FE PROTECT LTD
Company number 09480879 · 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.
Financial Health Assessment: FE PROTECT LTD (Company No. 09480879)
1. Financial Health Score: B — Guarded but stable
The company receives a B. Its balance sheet is solvent, it is up to date with filings, and it has built substantial shareholders’ funds over recent years. However, the patient is no longer trading: the accounts are prepared on a basis other than going concern, trade has been transferred out of the company, and recovery depends heavily on a single intercompany debtor. It is stable, but not self-sustaining.
2. Key Vital Signs
| Metric | Latest figure (period ended 31 Dec 2023) | Interpretation |
|---|---|---|
| Net assets / Shareholders’ funds | £2,948,301 | Strong equity base. The company owns substantially more than it owes overall, like a patient with healthy blood pressure. |
| Current ratio | ~5.2:1 (current assets £3.66m ÷ current liabilities £0.71m) | Appears very liquid on paper, but most current assets are money owed by group companies rather than cash or trade debtors. |
| Cash ratio | 0.61:1 (cash £429,001 ÷ current liabilities £707,386) | Cash covers only about 61% of immediate liabilities. The pulse is present but weak; the company cannot pay all creditors from cash alone. |
| Cash at bank | £429,001 | Improved markedly from £20 in 2018, but modest relative to the size of the balance sheet. |
| Debtor concentration | £3,196,793 owed by group undertakings out of £3,226,686 total debtors (~99%) | Extreme dependency on one source. If the group debtor cannot be collected, liquidity would deteriorate quickly. |
| Creditor composition | £462,492 taxation and social security (about 65% of creditors) | A significant priority creditor. Timely settlement is essential to avoid escalation. |
| Fixed assets | £0 | No tangible asset base remains; the trade and fixed assets were transferred out. |
| Profitability | £1,271,321 profit for the 17-month period to 31 Dec 2023 | Historically strong earnings, but the company ceased trading on 13 November 2023, so this is not a recurring income stream. |
| Filing compliance | Accounts and confirmation statement not overdue | Good regulatory health; no immediate penalties or strike-off risk from late filings. |
| Going concern | Prepared on a basis other than going concern | A critical symptom: the directors state the business was hived up to another group company and is not expected to re-commence trading. |
3. Diagnosis
FE PROTECT LTD is a solvent, well-capitalised insurance broker that has effectively ceased to operate as a trading business. The most recent filed accounts (period ended 31 December 2023, approved 30 September 2024, with an unqualified audit opinion) record that the company stopped trading on 13 November 2023 when its business and trade were transferred to another group company.
The balance sheet now resembles a “recovery ward” rather than a trading entity:
- Assets: Almost entirely cash (£429,001) and a large intercompany debtor (£3.197m). There are no fixed assets and negligible trade debtors (£29,893).
- Liabilities: £707,386 due within one year, dominated by taxation and social security (£462,492) and amounts owed to group undertakings (£82,314).
- Equity: £2,948,301, built up through retained profits and historically strong trading.
The principal risk is concentration and realisability. The company’s ability to settle its creditors depends on collecting the intercompany debtor. If that group entity is financially sound, the company can settle its liabilities and close cleanly. If the debtor becomes impaired, the thin cash buffer would be insufficient to cover the tax and social security liability, creating pressure despite positive net assets.
Ownership is concentrated: a corporate entity holds more than 75% of shares and voting rights, with additional corporate and individual persons of significant control. This centralised control means decisions about settlement, closure, or distribution rest with a small group.
No indicators of insolvency are present in the data, and the auditor’s report was unqualified. However, the absence of a going-concern basis means the accounts reflect a break-up or wind-down position rather than an ongoing business.
4. Prognosis
The outlook is favourable but conditional. Assuming the group debtor is collected and creditors are settled, the company is likely to proceed to an orderly closure—either through voluntary strike-off or a members’ voluntary liquidation—with surplus funds returned to shareholders.
If the intercompany debtor cannot be realised, the company could face liquidity strain despite its strong net asset position, particularly given the sizeable tax and social security creditor. There is no sign of an independent revenue stream to fall back on.
5. Recommendations
- Prioritise collection of the intercompany debtor (£3.197m). This is the company’s main source of funds to pay creditors and close its affairs.
- Settle taxation and social security liabilities promptly (£462,492). These are priority debts; delays can trigger interest, penalties, or enforcement action.
- Plan the exit route. Once creditors are paid, consider a members’ voluntary liquidation or voluntary strike-off to formally close the company, since the directors do not intend to re-commence trading.
- Maintain statutory compliance. Continue filing confirmation statements and any final accounts on time to avoid penalties or involuntary strike-off.
- Monitor group company health. Because recovery depends on a single group debtor, keep the financial position of the parent and related entities under review.
- Distribute surplus only after all liabilities are cleared. Any return to shareholders should await full settlement of creditors and compliance with legal requirements for capital distribution.