FRIDAYWOOD STEEL LIMITED

Executive Summary

Fridaywood Steel Limited, a recently established micro-entity in steel manufacturing, exhibits a weak financial position with net liabilities and severely constrained liquidity. The absence of positive working capital and ongoing losses suggest inability to service new credit reliably. Credit approval is declined at this stage pending evidence of improved financial health and operational cash flow generation.

FRIDAYWOOD STEEL LIMITED - Analysis Report

Company Number: 14458032

Analysis Date: 2025-07-29 12:34 UTC

1. Credit Opinion: DECLINE
   Fridaywood Steel Limited shows a deteriorating financial position with net liabilities and negative net current assets as of the latest accounts. The company’s balance sheet reveals significant accrued expenses/deferred income far exceeding current assets, indicating liquidity stress. As a micro-entity in the steel manufacturing sector with limited operating history (incorporated late 2022) and only one employee, the business lacks financial resilience and evidence of ongoing profitability or cash flow sufficiency to service debt reliably. The director’s full ownership and control offer some governance clarity but no mitigating financial strength. Therefore, extending credit at this stage represents a high risk.

2. Financial Strength:
   The company’s net assets have worsened substantially, moving from £229 net assets in 2023 to a net liability of £599 in 2024. Current assets have fallen sharply from £53 to £3, while current liabilities increased to £30. The considerable accruals and deferred income (£572) suggest obligations or income recognition timing issues impacting reported equity negatively. This indicates a weakening balance sheet with negative working capital and no tangible buffer to absorb shocks or support debt financing.

3. Cash Flow Assessment:
   Current assets of £3 against current liabilities of £30 expose critical liquidity constraints. Negative net current assets and working capital imply the company may struggle to meet short-term obligations as they fall due. Limited staff (one employee) and lack of detailed cash flow disclosures further obscure the company’s operational cash generation capacity. Overall, the cash flow position is inadequate for debt servicing or maintaining smooth operational funding.

4. Monitoring Points:

• Quarterly updates on cash position and working capital
• Changes in accruals and deferred income balances, clarifying nature and timing
• Profit and loss performance to assess operational viability
• Director’s plans for capital injection or restructuring to restore net asset value
• Any new credit facilities or supplier payment terms changes