FTR COLLECTIVE LTD

Executive Summary

FTR COLLECTIVE LTD is a micro-entity management consultancy with a sole director and shareholder. While the company maintains compliance with filing requirements, its financials reveal a deteriorating liquidity position and shrinking net assets, warranting cautious monitoring. Further analysis of cash flows and liabilities is recommended to clarify solvency and operational sustainability risks.

FTR COLLECTIVE LTD - Analysis Report

Company Number: 13884276

Analysis Date: 2025-07-29 20:31 UTC

1. Risk Rating: MEDIUM
   The company exhibits very limited net assets and working capital, with net current liabilities reported in the latest year, suggesting potential liquidity constraints. However, the absence of overdue filings and the small scale of operations reduce immediate solvency concerns.

2. Key Concerns:

• Liquidity Issues: Current liabilities exceed current assets as of the 2025 financial year-end, indicating a working capital deficit that may impair the company’s ability to meet short-term obligations.
• Declining Net Assets: Net assets have significantly decreased from £5,133 in 2022 to £349 in 2025, which could indicate ongoing losses or withdrawals impacting financial stability.
• Single Director and Shareholder Control: Robert James Smith holds 75-100% ownership and is the sole director, concentrating control and potentially increasing governance risk if checks and balances are limited.

3. Positive Indicators:

• No Overdue Filings: Both annual accounts and confirmation statements are filed on time, reflecting regulatory compliance and good governance discipline.
• Micro-Entity Status: The company operates at a micro scale with very limited employees (1), which may reduce operational complexity and fixed overhead costs.
• Stable Director Appointment: The sole director has been in place since incorporation, which suggests management continuity.

4. Due Diligence Notes:

• Review the detailed profit and loss accounts to understand the causes behind declining net assets and current liabilities exceeding current assets.
• Assess the company’s cash flow statements, if available, to evaluate liquidity trends and sufficiency of cash reserves.
• Investigate any related party transactions or director loans that may impact the financial position given the sole director’s control.
• Confirm the nature of current liabilities to determine whether they are trade payables, short-term borrowings, or other obligations affecting liquidity risk.
• Evaluate operational plans or contracts that may support future revenue generation and financial recovery.