FULL SPREAD LIMITED
Company number 04129667 · 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.
1. Credit Opinion: DECLINE
Full Spread Limited should not be approved for unsecured credit in its current position.
The latest filed balance sheet at 31 December 2024 shows:
- Net liabilities: £41,438, worsening from £29,477 in 2023.
- Current assets: £11,828 against current liabilities: £73,083, leaving a net current liabilities shortfall of £61,255.
- Shareholders’ funds: £41,438 negative, and the deficit has grown every year since 2021.
- Total assets: fell from £64,130 in 2022 to £34,143 in 2024, while liabilities remained broadly unchanged.
The company is technically insolvent on a balance sheet basis. Its working capital position is severely negative and there is no evidence of recoverable cash generation within the business to service new debt. The accounts are exempt from audit and no profit and loss account has been filed, so income and cash flow cannot be independently verified. On the available information, the credit risk is unacceptable for a new facility.
2. Financial Strength
The balance sheet has deteriorated consistently:
| Year Ended | Net Assets / Liabilities | Total Assets |
|---|---|---|
| 2021 | £20,925 | £85,633 |
| 2022 | £(3,276) | £64,130 |
| 2023 | £(29,477) | £46,204 |
| 2024 | £(41,438) | £34,143 |
The decline in total assets has not been matched by a reduction in liabilities. Current liabilities remain around £73,000 while current assets have fallen to under £12,000. Fixed assets of £22,315 are modest and may not be readily saleable without disrupting operations.
There are no indicators of recapitalisation or meaningful profit retention. The company is relying on creditor support, likely from directors or trade creditors, to continue as a going concern. From a lender’s perspective, there is effectively no equity cushion to absorb losses.
3. Cash Flow Assessment
The micro-entity accounts do not include a cash flow statement or profit and loss account, so actual operating cash flow is not disclosed. However, the balance sheet signals serious liquidity stress:
- Current ratio: approximately 0.16, meaning only £0.16 of current assets is available for every £1.00 of debt due within one year.
- Working capital deficit: £61,255.
- Long-term creditors: £2,498, up from nil, indicating the company has taken on additional deferred debt despite its weak position.
There is no evidence that the business generates sufficient cash to meet its near-term obligations, let alone service additional borrowing. Even if stock or debtors are realised in full, the company would still fall materially short of settling its creditors.
4. Monitoring Points
If the bank already holds exposure, or if the borrower presents a credible restructuring and recapitalisation plan, the following should be monitored closely:
- Net liabilities trend: whether shareholders’ funds move back towards positive territory.
- Working capital position: any narrowing of the current asset and current liability gap.
- Creditor behaviour: late payments, county court judgments, or supplier complaints.
- New borrowing or charges: further debt or security registrations would increase pressure on unsecured creditors.
- Director support: whether directors are formally subordinating their loans to the company.
- Filing compliance: although currently up to date, late or missing filings would be an early warning sign.
- Revenue and margin visibility: any future accounts showing turnover and gross profit would help assess whether the business can trade out of its deficit.