F.T.L. COMPANY LIMITED
Company number 00834767 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis Report: F.T.L. COMPANY LIMITED
1. Credit Opinion: DECLINE
This application must be declined. The company is currently in Liquidation, which represents an absolute bar to any new credit facility. The registered address has already been moved to insolvency practitioners Cowgill Holloway Business Recovery, confirming formal insolvency proceedings are underway. No lending proposition can be considered for an entity in liquidation — the company is being wound up and will cease to exist as a going concern.
Even absent the liquidation status, the financial trajectory would raise significant concerns:
- Net assets eroded by 53% over three years: from £1,160,192 (2019) to £545,892 (2021)
- Cash depleted by 75% in one year: from £520,431 (2020) to £130,640 (2021)
- Accumulated losses: P&L reserves fell from £672,832 to £476,517, confirming trading losses of approximately £196,315 in 2021
- Long-term creditors nearly doubled: from £337,647 to £585,644, suggesting debt restructuring or rollover of obligations
2. Financial Strength
Assessment: Critically Weak / Terminal
| Metric | 2021 | 2020 | 2019 |
|---|---|---|---|
| Net Assets | £545,892 | £742,207 | £1,160,192 |
| Shareholders' Funds | £545,892 | £742,207 | £1,160,192 |
| P&L Reserve | £476,517 | £672,832 | N/A |
| Total Liabilities | £1,712,638 | £2,175,502 | £2,134,352 |
The balance sheet shows sustained erosion of equity. Total liabilities at £1.7m significantly exceed the remaining tangible net worth of £546k, giving a debt-to-equity ratio of approximately 3.1x — well beyond acceptable parameters for manufacturing businesses.
Tangible assets of £775k represent the primary asset backing, but in a liquidation scenario, forced sale values typically realise 40-60% of book value, potentially leaving a significant shortfall for creditors.
3. Cash Flow Assessment
Assessment: Severely Compromised
- Current Ratio: 1.32x (£1,483k / £1,127k) — marginal at best and deteriorating from prior years
- Cash position: £130,640 — down 75% year-on-year from £520,431
- Working capital: £356,203 — thin for a manufacturing operation with £775k in fixed assets and £777k in stock
The dramatic cash decline, combined with rising long-term creditors, suggests the company was unable to service its obligations from operations and was likely relying on deferred creditor payments or asset disposals. Stock levels of £777k represent over 6 months of current liabilities — potentially indicating slow-moving inventory or overvaluation.
In a liquidation context, cash flow is irrelevant as the insolvency practitioner controls all disbursements.
4. Monitoring Points
While no monitoring is required given the DECLINE decision, the following points are notable for any connected parties or existing creditors:
- Accounts and Confirmation Statement both OVERDUE — failure to file suggests operational collapse
- Director conduct should be reviewed — the speed of decline (net assets halved in two years) warrants scrutiny under insolvency legislation
- Preferential creditor positions — secured and preferential creditors will be paid first; unsecured creditors likely face significant losses
- Related party exposures — the increase in long-term creditors may include director or group loans that could rank alongside or behind other creditors
- Stock realisation risk — £777k in stock may be overvalued; manufacturing inventory often sells at steep discounts in liquidation