FLOVIA LIMITED

Risk Rating: MEDIUM

Justification: Flovia Limited is an active private limited company with statutory filings up to date and no insolvency proceedings indicated. However, the balance sheet shows negative net assets (net liabilities of £18,470 at 28 February 2026), meaning total liabilities exceed total assets. Combined with a thin short-term liquidity position and a reliance on long-term creditors, this presents elevated solvency risk despite the company’s current operational status.

Key Concerns

1. Negative net assets: Shareholders’ funds are negative at £-18,470 as at 28 February 2026 (£-18,272 in the prior year), indicating that the company’s liabilities exceed its assets on a balance sheet basis.
2. Weak short-term liquidity: Current assets of £1,237 are insufficient to cover current creditors of £6,879, resulting in net current liabilities of £5,642. The company holds minimal liquid resources relative to its immediate obligations.
3. Concentration of long-term debt: £177,500 of creditors fall due after more than one year, representing the substantial majority of total liabilities. Any demand for repayment, withdrawal of funding, or deterioration in the underlying asset value would place immediate pressure on the company’s limited cash resources.

Positive Indicators

• Statutory compliance: The accounts and confirmation statement are not overdue, and the company remains active with no indication of liquidation, administration, or receivership.
• Underlying asset base: Fixed assets of £164,672 provide some tangible value, consistent with the company’s real estate letting activity (SIC 68209).
• Lean cost structure: The accounts report an average of one employee, suggesting a low operational overhead.

Due Diligence Notes

• Terms of long-term borrowing: Identify the nature of the £177,500 creditor due after more than one year, including the lender, interest rate, repayment schedule, and any security held over the fixed assets.
• Composition of fixed assets: Confirm the type, location, and valuation of the property or properties held, together with any encumbrances or charges registered against them.
• Registered office discrepancy: The company overview lists a Solihull address, while the latest accounts note a Lichfield registered office; verify the current registered office.
• Related-party considerations: The directors are also persons with significant control; review any related-party loans, transactions, or arrangements that may affect the terms of funding.
• Cash flow evidence: Obtain management accounts or bank statements to assess whether rental income is sufficient to meet operating costs, creditor obligations, and any debt service requirements.
• Name change: The company previously traded as Little Thatch Workshop Limited until August 2022; confirm whether this reflects a change in business model or asset base.