FRZ MANAGEMENT LIMITED

Executive Summary

FRZ Management Limited demonstrates stable asset holdings and positive net assets within a highly leveraged balance sheet structure. The company’s liquidity is tight, with modest working capital and significant long-term debt, necessitating cautious credit exposure. Continued monitoring of liquidity, debt servicing, and operational performance is recommended to safeguard credit risk.

FRZ MANAGEMENT LIMITED - Analysis Report

Company Number: 12777727

Analysis Date: 2025-07-20 19:18 UTC

1. Credit Opinion: APPROVE with caution. FRZ Management Limited is a micro-entity operating in real estate management and investment, with stable asset holdings primarily in fixed assets. The company shows consistent net asset value growth and no overdue filings, indicating compliance and stable management. However, the very high level of long-term creditors relative to net assets and current liabilities suggests significant leverage, which may constrain liquidity and debt servicing capability. The company’s ability to meet short-term obligations appears marginal, warranting careful monitoring.

2. Financial Strength: The balance sheet shows fixed assets at £347,535, which remain stable year-on-year, representing the core asset base. Shareholders’ funds are positive but low at £13,818 as of 2024, with a modest increase from prior years. Current assets are minimal (~£9,800), and current liabilities are very high (~£338,000), resulting in a small net current asset position of £4,285. Long-term liabilities exceed £338,000, indicating substantial debt financing. While net assets are positive, the leverage and thin equity cushion indicate moderate financial risk.

3. Cash Flow Assessment: Liquidity is tight given the low level of current assets relative to current liabilities. Net current assets are positive but marginal, suggesting limited working capital buffer. The company’s ability to generate cash from operations is not directly disclosed, but the balance sheet structure implies dependence on ongoing financing or asset sales to cover obligations. The single director and micro-entity status imply a small operational scale, which may limit cash flow volatility but also restrict growth.

4. Monitoring Points:

• Monitor changes in current liabilities and liquidity ratios to ensure short-term obligations remain covered.
• Watch for any material changes in long-term debt levels or repayment schedules.
• Track net asset growth and profitability (if P&L data becomes available) to assess financial resilience.
• Review director conduct and continued filing compliance to mitigate operational risk.
• Assess impact of external market conditions on real estate holdings and income streams.