FROSTVIEW LIMITED

Risk Rating: LOW The company demonstrates a low risk profile based on a long operational history (incorporated in 2001), consistent regulatory compliance, and an improving net asset position. Net assets have grown to £11,213 in the latest reporting period (FY2025), the highest level in the available ten-year history, indicating strengthening equity rather than deterioration. Current assets also comfortably exceed current liabilities, suggesting adequate short-term solvency.

Key Concerns: - Opacity of Profitability and Cash Flows: The company files under the micro-entity regime (FRS 105) and has elected not to include an income statement (Profit & Loss account). This limits visibility into turnover, gross margins, and operating profitability, making it difficult to assess the sustainability of its operational cash generation. - Composition of Current Assets and Liabilities: While the current ratio appears healthy at approximately 1.44 (£39,771 / £27,698), the lack of breakdown means current assets could be heavily weighted toward illiquid trade debtors rather than cash. Similarly, the nature of the £27,698 in current liabilities is unclear; if predominantly comprised of demand loans from directors or related parties, liquidity risk could elevate quickly. - Scale and Key-Person Risk: With only two employees and a family-based ownership and directorship (the Dodd family), the company is highly vulnerable to key-person risk. Disruption to the directors could severely impact operations given the lack of institutional depth.

Positive Indicators: - Strengthening Balance Sheet: The company has reversed the minor equity dip seen in FY2023 (£3,055) and has grown net assets substantially to £11,213 in FY2025. This indicates retained profitability and a reinforcement of the financial buffer against liabilities. - Regulatory Compliance: Filings are up to date, with the latest accounts made up to 5 April 2025 and the confirmation statement up to 30 July 2026. There are no overdue documents, which suggests disciplined governance and administration. - Longevity: Operating as an active entity for over 23 years in the IT services sector suggests a stable, viable business model capable of weathering economic cycles.

Due Diligence Notes: - Asset Composition: Request a breakdown of the £39,771 in current assets to verify the proportion of cash versus trade debtors, and assess the collectability of those debtors. - Creditor Profile: Investigate the nature of the £27,698 in current liabilities. Determine how much relates to standard trade creditors, corporation tax, and any director or related-party loans. - Operational Activity: The filed accounts explicitly state "No description of principal activity." Further inquiry is needed to understand the specific IT services provided under SIC code 62090, the company's client base, and contract structures to assess revenue stability.