FRONTIERAUDITSSOLUTIONS LTD

Executive Summary

FRONTIERAUDITSSOLUTIONS LTD is currently experiencing financial distress, evidenced by negative net assets and a liquidity shortfall at the end of 2024. Immediate focus on cash flow management and cost control is essential to prevent further deterioration. With prompt corrective actions, there is potential to stabilize and improve the company's financial health.

FRONTIERAUDITSSOLUTIONS LTD - Analysis Report

Company Number: 14563699

Analysis Date: 2025-07-29 18:45 UTC

Financial Health Assessment for FRONTIERAUDITSSOLUTIONS LTD

---

1. Financial Health Score: D

Explanation:
The company exhibits signs of financial distress, reflected by negative net current assets and net liabilities in the latest financial year 2024. While the business started with no liabilities and positive net assets in 2023, the 2024 figures indicate a significant deterioration. This score suggests caution and the need for remedial action.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	0	0	No investment in long-term assets; typical of a service-based consultancy.
Current Assets	0	3,252	Cash or receivables dropped to zero, indicating poor liquidity.
Current Liabilities	8,800	0	Emergence of short-term debts or payables; a "symptom of distress."
Net Current Assets	-8,800	3,252	Shift from positive working capital to negative; "unhealthy cash flow" warning.
Net Assets (Total Equity)	-8,800	3,252	Company moved from positive equity to a deficit, implying accumulated losses or liabilities.
Employees (average)	1	0	Small headcount consistent with micro entity status.

---

3. Diagnosis: What the Financial Data Reveals

• Liquidity Crisis: Current assets have vanished, yet current liabilities have appeared, indicating a cash crunch or inability to meet short-term obligations. This is akin to a patient whose vital signs suddenly deteriorate without reserves to buffer shocks.

• Negative Net Assets: The company’s net assets have moved from a modest positive position in 2023 to a negative figure in 2024, an alarming sign of financial weakening. This suggests the company is operating "in the red," possibly funding operations through debt or unpaid bills.

• No Fixed Assets: Typical for a management consultancy, so this is not inherently negative but means no asset base to leverage or sell to raise funds.

• Young Company Status: Incorporated late 2022, so it's still in early development phases. The financial deterioration within two years is a warning but may also reflect initial setup costs or low revenue generation.

• Single Director and Shareholder: Mr. Fahyaz Khan controls 100% ownership and direction, simplifying governance but concentrating risk.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

• Immediate Cash Flow Management: Prioritize improving liquidity by collecting any outstanding receivables, negotiating payment terms with creditors, or injecting additional capital to stabilize cash flow.

• Cost Control and Expense Review: Assess all expenses to reduce unnecessary costs. Given the micro-entity size, controlling overheads is critical to avoid worsening liabilities.

• Revenue Enhancement: Develop strategies to increase sales or fees, possibly through marketing, partnerships, or expanding service offerings under the management consultancy SIC code.

• Explore Financing Options: Consider short-term financing or capital injection from the shareholder, as the sole owner has full control to support the business.

• Regular Financial Monitoring: Implement monthly cash flow forecasts and management accounts to detect early warning signs and adjust quickly.

• Professional Advice: Engage a financial advisor or accountant to assist with restructuring the financials and planning for recovery.

---

Medical Analogy Summary

The company’s financial health resembles a patient whose vital signs have shifted from stable to critical due to inadequate liquidity and emerging liabilities. Without prompt intervention to restore "healthy cash flow" and reduce liabilities, the prognosis could lead to insolvency. Early detection and treatment—through cash injections and cost management—are essential to return the company to a stable condition.

---