FURROWED BROW LIMITED

Executive Summary

Furrowed Brow Limited is a small artistic creation company exhibiting a weakening financial position with significant declines in cash and net assets over the last year. While still solvent with positive working capital, the company faces liquidity risks and requires close monitoring of cash flow and debtor management. Conditional approval is advised, contingent on evidence of improved cash generation and financial controls.

FURROWED BROW LIMITED - Analysis Report

Company Number: 12496723

Analysis Date: 2025-07-19 12:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Furrowed Brow Limited shows a positive net asset position and working capital surplus as of the latest accounts date. However, the significant decline in net assets and cash from £13,439 to £4,690 and £18,984 to £2,359 respectively over the last year is concerning. This sharp reduction signals liquidity constraints and a weakening financial position. Approval is recommended only if the company can demonstrate a clear plan to restore cash flow and profitability, supported by updated management accounts or cash flow forecasts.

2. Financial Strength:
   The balance sheet reflects a small private company with minimal fixed assets (none reported) and a current asset base primarily composed of debtors and cash. The net current assets are positive (£4,690) but have more than halved in 12 months from £13,439. Shareholder funds have also contracted substantially. The low share capital (£2) is typical for a small private company but indicates limited equity buffer. The company's financial trajectory appears negative, likely due to reduced cash reserves and collections.

3. Cash Flow Assessment:
   Cash at bank has diminished markedly from £18,984 to £2,359, representing a risk to short-term liquidity. Current liabilities have reduced sharply from £11,017 to £690, which partially explains the improved working capital ratio but may reflect deferred or reduced creditor balances rather than improved cash management. Debtors have also dropped, indicating either improved collections or reduced sales. Overall, the company’s cash flow position appears strained, and its ability to service new or existing debt depends on a recovery in cash inflows.

4. Monitoring Points:

• Monthly cash flow and bank balances to detect ongoing liquidity issues
• Debtor aging and collection efficiency to ensure receivables convert timely to cash
• Creditor payments and any deferred liabilities impacting cash outflows
• Profit & loss performance to monitor return to profitability or continued erosion of reserves
• Directors’ commentary or forecasts for recovery plans and business outlook