Company Number: 14810687

Analysis Date: 2025-07-29 14:04 UTC

1. Credit Opinion: DECLINE
   The Ferns BB Ltd is a newly incorporated company (April 2023) operating in general building cleaning services. The latest financials to April 2024 indicate negative net assets (£-3,082) and net current liabilities (£-3,180). Current liabilities exceed current assets, reflecting working capital deficits. The company’s sole director and 100% shareholder is Mrs. Rebecca Jayne Everson. Given the negative equity position, weak liquidity, and lack of trading history beyond one year, the company currently lacks sufficient financial strength to support new credit facilities without significant additional security or guarantees.

2. Financial Strength:
   The balance sheet shows total fixed assets of £11,339 (mostly intangible franchise costs) and current assets of £21,100, mainly cash (£10,823) and debtors (£10,277). Current liabilities stand at £24,280, including trade creditors and tax liabilities, with longer-term creditors of £11,059. The company’s negative shareholders’ funds reflect accumulated losses or initial startup costs not yet offset by earnings. The capital base is minimal with only £1 share capital issued. Overall, the financial position is fragile with a negative net asset base and no proven profitability or retained earnings.

3. Cash Flow Assessment:
   Cash on hand (£10,823) is insufficient to cover immediate liabilities due within one year (£24,280), resulting in a net working capital deficit. Trade debtors (£10,277) provide some short-term inflow potential but collection risk exists. The company’s cash flow appears constrained, and ongoing operational cash generation is unproven given the short trading period. Without evidence of steady revenue inflows or committed funding, liquidity risk is elevated.

4. Monitoring Points:

• Quarterly cash flow and debtor collection performance to track liquidity improvements.
• Timely settlement of trade creditors and tax obligations to avoid enforcement action.
• Progress in building positive retained earnings and moving towards positive net assets.
• Any director or shareholder injections of funds or guarantees to support operations.
• Changes in working capital structure or financing arrangements to improve balance sheet strength.