FRONT ROW INTELLIGENCE SOUTH LIMITED

Executive Summary

Front Row Intelligence South Limited is currently financially distressed, with significant negative net assets and substantial liquidity deficits indicating high solvency risk. While the company holds a valuable investment property asset and remains compliant with filings, persistent operating losses and a heavy debt burden raise concerns about its operational sustainability without continued director support. Further due diligence is recommended to clarify debt terms, cash flow viability, and asset liquidity.

FRONT ROW INTELLIGENCE SOUTH LIMITED - Analysis Report

Company Number: 13589115

Analysis Date: 2025-07-29 18:01 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by persistent net current liabilities, negative net assets, and high creditor balances exceeding current assets. The financial position shows an ongoing deficit in shareholder funds and reliance on director support for going concern, indicating elevated financial stress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has net liabilities of approximately £50.7k as of August 2023, worsening from prior years, suggesting accumulated losses or deficit equity.
• Severe Liquidity Deficit: Current liabilities (£230k) far exceed current assets (£57.8k), resulting in net current liabilities of about £172k. This indicates potential difficulty meeting short-term obligations.
• Heavy Debt Burden: Substantial long-term creditors (bank loans and overdrafts) of £239k add to financial strain; absence of cash reserves (£74) compounds risk of operational cash flow shortfalls.

3. Positive Indicators:

• Investment Property Asset: The company holds investment property valued at £360.8k, which provides a tangible asset base and potential for capital appreciation or collateral use.
• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, reducing regulatory risk.
• Continuity of Director Support: Directors affirm the company’s going concern status based on their ongoing support, which may provide short-term stability.

4. Due Diligence Notes:

• Clarify the nature and terms of the £239k long-term creditors, including repayment schedule, security, and interest obligations.
• Investigate the operational cash flows and revenue streams to assess sustainability amid negative working capital.
• Review the valuation and liquidity of the investment property to understand its usability for refinancing or debt restructuring.
• Examine the reasons behind recurring deficits and losses reflected in negative retained earnings and net assets.
• Assess director support arrangements and any contingent liabilities or guarantees provided.