FTACADEMY LTD

Executive Summary

FTACADEMY LTD is an active micro-sized private limited company showing early-stage growth in current assets and a positive working capital position. Despite negative net equity due to long-term creditors, the company’s small scale and manageable short-term liabilities provide some operational resilience. Credit approval is recommended on a conditional basis with close monitoring of cash flows and creditor exposure to mitigate risk.

FTACADEMY LTD - Analysis Report

Company Number: 12780068

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

1. Credit Opinion: CONDITIONAL APPROVAL
   FTACADEMY LTD is a micro-entity with limited financial history but shows signs of modest improvement in working capital and assets. However, the company’s net assets remain negative (£-1,771 as of 31 July 2024) primarily due to long-term creditors (£5,510). The absence of an audit and reliance on micro-entity accounts limits financial transparency. Given the company’s small scale, limited capital, and negative equity, credit approval should be conditional on enhanced monitoring of cash flows and receivables, with strict limits on exposure and possibly requiring personal guarantees or collateral.

2. Financial Strength:
   The balance sheet indicates low fixed assets (not disclosed but implied), with current assets rising from £60 in 2023 to £9,880 in 2024, which is a positive trend. Current liabilities have increased but remain manageable at £6,141 with net current assets of £3,739 — a sign of adequate short-term liquidity. However, significant creditors falling due after one year (£5,510) have pushed net assets into negative territory, reflecting accumulated losses or funding via debt. Shareholders funds are negative, indicating that the business has been financed through liabilities rather than equity. This introduces risk if profits do not materialize.

3. Cash Flow Assessment:
   With current assets exceeding current liabilities, the company has a positive working capital position, which supports short-term liquidity needs. The increase in current assets likely reflects improved cash or receivables, but limited disclosure on cash flow or profit & loss restricts full assessment. The company employs only 3 people, limiting fixed overheads, which may help conserve cash. Nonetheless, the reliance on creditor financing and negative equity raises concerns about sustainability without consistent revenue inflows. Cash flow monitoring is essential to ensure timely servicing of short-term and long-term liabilities.

4. Monitoring Points:

• Track quarterly cash flow and debtor aging to confirm collection efficiency and liquidity.
• Monitor creditor balances, especially long-term liabilities, to anticipate refinancing risks.
• Watch for any material changes in revenue or expense patterns in future accounts.
• Ensure timely filing of statutory returns and accounts to maintain compliance and transparency.
• Review director conduct and company governance periodically, although no adverse records are currently noted.