Company Number: 13437184

Analysis Date: 2025-07-20 16:39 UTC

Credit Opinion:
CONDITIONAL APPROVAL. FTF2 Ltd is a relatively new private limited company incorporated in 2021, operating in support activities to performing arts. The company exhibits a positive net asset position and working capital surplus as of its latest available accounts (2021 year-end). However, the limited financial history and absence of recent accounts beyond 2021 restrict a comprehensive assessment of current financial performance and trends. Credit approval should be conditional upon receipt of up-to-date financial statements and ongoing monitoring of liquidity and operational cash flows.

Financial Strength:
As at 31 December 2021, FTF2 Ltd reported net assets of £260,410 supported by tangible fixed assets (£34,895 net book value) and current assets of £925,007. The current liabilities stood at £692,862, resulting in positive net current assets of £232,145 and a healthy total assets less current liabilities figure of £267,040. Share capital is nominal (£100), with retained earnings comprising the bulk of shareholder funds. The balance sheet reflects a sound equity base relative to liabilities at that date, indicating reasonable financial strength for a company of its age and size.

Cash Flow Assessment:
The company held £506,492 in cash at year-end 2021, which alongside debtors of £418,515, provides a strong liquidity buffer. The working capital position is positive, with current assets exceeding current liabilities by over £230k, suggesting the company can meet short-term obligations. However, a significant portion of creditors (£506,003) are classified as other creditors, which might include accruals or deferred payments requiring scrutiny. The absence of subsequent financials means liquidity and cash conversion cycles must be closely monitored to ensure ongoing debt servicing capability.

Monitoring Points:

• Obtain and review the latest annual accounts (2022 and 2023) to verify continued profitability and liquidity.
• Monitor debtor quality and ageing to mitigate risk of bad debts impacting cash flow.
• Scrutinize composition of current liabilities, particularly "other creditors," to understand payment obligations and timing.
• Track changes in working capital and cash reserves to assess operational cash flow stability.
• Observe any director changes and related governance issues, noting a recent director appointment in mid-2025 which may influence management quality.
• Assess impact of industry-specific risks given the niche sector (performing arts support) and economic fluctuations affecting discretionary spending.