FROWEST LTD

Executive Summary

FROWEST LTD is a micro-entity in its infancy with limited financial resources and negative working capital, posing liquidity risks. While the sole director demonstrates full control and no compliance issues exist, credit approval should be conditional with tight monitoring of cash flow and financial performance improvements.

FROWEST LTD - Analysis Report

Company Number: 14719481

Analysis Date: 2025-07-29 20:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   FROWEST LTD is a newly incorporated micro-entity with limited trading history and minimal financial resources. The company’s net assets stand at a low £185 with a negative working capital position, indicating tight liquidity. However, there are no overdue filings or signs of distress, and the sole director holds full control and appears committed. Credit approval could be considered on a conditional basis, requiring close monitoring and possibly secured or short-term facilities given the early stage of the business and current financial constraints.

2. Financial Strength:
   The balance sheet shows very modest fixed assets (£1,112) and current liabilities of £477, resulting in net current liabilities of £477. Accruals and deferred income of £450 further reduce the net assets to £185. This indicates a fragile equity base and limited buffer against financial shocks. The company’s small scale and micro classification restrict the amount of financial information available, but the low net assets and negative working capital suggest limited financial strength at this stage.

3. Cash Flow Assessment:
   Negative net current assets imply the company may face liquidity challenges in meeting short-term obligations without additional cash inflows or financing. The lack of cash or current assets disclosed is a concern for immediate liquidity. Given the company employs only one person and operates in event catering and prepared meals—a sector that requires working capital for inventory and operations—cash flow management will be critical. No historical cash flow data is available, so assessment relies on balance sheet indicators.

4. Monitoring Points:

• Monitor future filings for evidence of revenue generation and improved working capital.
• Watch for increases in current assets, particularly cash or receivables, to cover current liabilities.
• Review director’s conduct and any changes in ownership or control.
• Track any new borrowings or credit facilities and their servicing status.
• Pay attention to any overdue accounts or confirmation statements to avoid compliance risk.