POWERED BY FRANK LIMITED

Executive Summary

Powered By Frank Limited is a micro-entity with a weak and declining financial position marked by minimal equity, deteriorating net assets, and limited liquidity. Its balance sheet suggests insufficient capacity to service debt or absorb financial shocks, making credit approval unsuitable at this time. Ongoing monitoring of working capital and capital structure is essential should the company seek future credit facilities.

POWERED BY FRANK LIMITED - Analysis Report

Company Number: 12917451

Analysis Date: 2025-07-20 12:54 UTC

1. Credit Opinion: DECLINE
   Powered By Frank Limited exhibits very weak financial health, with a deteriorating net asset position turning negative in recent years and only minimal equity (£650) reported in 2024. The company’s liabilities consistently exceed its assets, indicating balance sheet fragility and insufficient capitalization. The absence of fixed assets and reliance on a small current asset base (~£10k) relative to current liabilities (~£8.7k) suggests limited collateral and liquidity buffer. Given these signs, the firm’s ability to service debt or sustain credit facilities is questionable. Without evidence of significant cash flow improvements or capital injection, credit extension is not advisable.

2. Financial Strength:
   The micro-entity operates with very modest resources. Fixed assets have declined to zero in the latest year, reflecting possible asset disposals or depreciation without replacement. Current assets have increased but remain small, primarily cash or receivables, while current liabilities have grown, leaving minimal net working capital (£1,330). The net asset base is low and was negative in the prior year, indicating erosion of shareholder funds and potential solvency concerns. Share capital is nominal at £1, providing no meaningful equity cushion.

3. Cash Flow Assessment:
   With only one employee and limited reported assets, the company's operating cash flow capacity appears minimal. The increase in current assets suggests some cash inflow, but rising current liabilities offset this, resulting in a precarious working capital position. The small net current asset figure indicates tight liquidity, likely insufficient for meeting short-term debts comfortably. No audit or detailed cash flow statements are available to confirm cash generation, but the balance sheet signals liquidity risk.

4. Monitoring Points:

• Watch for any material changes in current liabilities relative to current assets, as liquidity is tight.
• Monitor future filings for improvements in net assets and working capital, which would indicate better financial stability.
• Track any capital injections or asset acquisitions that could bolster the balance sheet.
• Observe director conduct and business activity for signs of operational improvement or distress.