FRM TECHNOLOGY LIMITED

Executive Summary

FRM Technology Limited presents a low financial risk profile with positive net assets and compliance in filings, although net asset decline and limited scale warrant monitoring. The company maintains operational stability as a micro-entity IT consultancy with sufficient short-term liquidity. Further investigation into profitability and cash flows is recommended to fully assess ongoing financial health and business sustainability.

FRM TECHNOLOGY LIMITED - Analysis Report

Company Number: 13114596

Analysis Date: 2025-07-20 13:19 UTC

1. Risk Rating: LOW
   The company exhibits a modest but positive net asset position with no overdue filings. Its micro-entity status and trading history since 2021 show operational continuity without apparent financial distress.

2. Key Concerns:

   • Declining Net Assets: Net assets decreased from £11,292 in 2023 to £7,657 in 2024, indicating a reduction in retained capital or profitability.
   • Limited Scale and Resources: Micro-entity status with one employee suggests limited operational scale and potentially constrained capacity to absorb shocks or finance growth internally.
   • Minimal Share Capital: Share capital remains nominal (£1), which may limit equity buffer and investor confidence in capital structure strength.

3. Positive Indicators:

   • Positive Working Capital: Net current assets remain positive (£6,230), indicating the company can meet short-term liabilities.
   • No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting regulatory compliance and governance discipline.
   • Consistent Operation: Active status since incorporation in 2021 with maintained director continuity suggests operational stability.

4. Due Diligence Notes:

   • Review profit and loss details to understand drivers behind net asset decline and assess profitability trends.
   • Investigate cash flow statements or management accounts if available for liquidity assessment beyond balance sheet snapshots.
   • Confirm any contingent liabilities or off-balance sheet obligations that could impact solvency.
   • Evaluate the business model and client base in IT consultancy (SIC 62020) to gauge sustainability and growth prospects.
   • Verify director background and any related party transactions for governance transparency.