FULL SPECTRUM INSIGHTS LTD

Executive Summary

Full Spectrum Insights Ltd shows signs of operational and liquidity stress with a significant decline in net assets and cash balances over the latest financial year. While the company remains active with positive net current assets, its increased borrowings and accumulated losses warrant a cautious credit approach. Conditional approval may be granted subject to enhanced financial oversight and cash flow management to mitigate repayment risks.

FULL SPECTRUM INSIGHTS LTD - Analysis Report

Company Number: 13176218

Analysis Date: 2025-07-29 12:41 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Full Spectrum Insights Ltd is a relatively new company (incorporated 2021) operating in market research (SIC 73200). The company shows positive net assets (£5,064) as of 31 March 2024, but a significant decline from the previous year (£28,982 as of 28 Feb 2023). The drop reflects a material loss in the profit and loss reserve (£-22,872), indicating recent operational challenges. Current liabilities have more than doubled, primarily due to increased bank loans (£16,862 from £130). While the company technically maintains positive working capital (£2,367), the sharp deterioration in liquidity and profitability necessitates caution. Approval for credit facilities may be considered with conditions such as a detailed business plan, cash flow forecasts, and regular financial monitoring.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£2,697) and a large proportion of current assets tied up in debtors (£19,951), with very low cash balances (£633). The company relies heavily on receivables to cover short-term obligations, which include significant bank loans and director’s loan accounts totaling £18,217. Shareholders’ funds have declined sharply due to accumulated losses, which weakens equity backing. The company’s equity base is thin relative to liabilities, and the increased borrowings suggest higher financial risk.

3. Cash Flow Assessment:
   Cash at bank has drastically fallen from £18,251 to £633, indicating tight liquidity. The increase in trade and other debtors suggests slower cash conversion cycles or potential collection issues. Current liabilities increased substantially, notably in bank loans, which indicates reliance on external funding to support operations. Working capital remains positive but reduced, limiting the company’s buffer to absorb shocks. Overall, cash flow appears strained and will require close management to maintain solvency.

4. Monitoring Points:

• Debtor aging and collection efficiency: To ensure receivables are converted to cash timely.
• Bank loan repayment schedule and covenant compliance: To assess debt servicing capacity.
• Profit and loss trends in upcoming accounts: To monitor recovery or further losses.
• Cash flow forecasts and liquidity ratios: To pre-empt any shortfalls.
• Director’s loan account movements: To understand related party transactions and impact on cash.