FSO VENTURES LTD

Executive Summary

FSO VENTURES LTD exhibits weak financial health with net liabilities and limited liquidity, typical of a start-up with minimal operating history. The company’s current financial position does not support credit approval due to insufficient cash and negative equity. Close monitoring of operational progress, cash flow improvements, and capital support is essential before reconsidering credit facilities.

FSO VENTURES LTD - Analysis Report

Company Number: 14460442

Analysis Date: 2025-07-29 14:25 UTC

1. Credit Opinion: DECLINE
   FSO VENTURES LTD is a newly incorporated company (since November 2022) with limited trading history and financial data. The company shows net liabilities of £3,679 and total creditors due after one year of £4,803, indicating a weak capital structure. Its cash balance of £1,124 is insufficient to cover current liabilities of £4,803, revealing liquidity constraints. The absence of employees and minimal share capital (£4) suggest a very small operational scale. Without evidence of revenue generation or profitability, the company currently lacks the financial strength and stability to reliably service debt or credit facilities. The control by a holding company owning 75-100% of shares may provide some indirect support, but this is unproven. Given these factors, approval for credit facilities is not recommended at this stage.

2. Financial Strength:
   The balance sheet reflects net liabilities and negative shareholders’ funds (£-3,679), highlighting an undercapitalized position. The company’s only asset is £1,124 in cash with no fixed assets or receivables reported. Creditors due after more than one year amount to £4,803, indicating outstanding obligations that exceed current asset coverage. The company’s limited exemption filing status and unaudited accounts reduce transparency. Overall, the financial strength is weak with no surplus capital or asset backing to support borrowing.

3. Cash Flow Assessment:
   Cash at bank is £1,124, which is modest and insufficient to cover current liabilities. Net current assets are positive at £1,124, but given the current liabilities also equal £4,803 (likely all longer-term creditors), liquidity is tight. Absence of trading history and profit and loss data prevents meaningful cash flow forecasting. Working capital appears minimal with no operational cash inflows disclosed. This suggests an inability to generate sufficient cash to meet obligations without external funding.

4. Monitoring Points:

• Future revenue and profit generation to improve net assets and cash flow.
• Changes in creditor structure, especially reduction in long-term liabilities.
• Cash flow statements when available to assess liquidity trends.
• Any capital injections or financial support from the holding company or shareholders.
• Filing of next accounts and confirmation statements on time to maintain compliance.
• Director’s ongoing involvement and any changes in management or control.