FOSTER CARELINE LTD.
Company number 06703132 · 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.
Credit Opinion: CONDITIONAL
The company presents a solid historical financial profile with growing net assets and a strong cash position as of 2017. However, the lack of recent financial data (latest available accounts are from November 2017) is a critical information gap. While the filing record shows accounts up to September 2025 are due but not yet overdue, no actual figures beyond 2017 have been provided for assessment. Approval is conditional upon receipt of up-to-date management accounts and filed statutory accounts for the last three financial years.
Financial Strength
Based on 2017 data:
- Net assets more than doubled from £111,055 to £221,339, indicating retained profitability.
- Total liabilities reduced sharply from £150,572 to £52,009, suggesting debt repayment or restructuring.
- Shareholders’ funds stood at £221,331, providing a comfortable equity buffer.
- The company is a small entity (filing as small) and appears to have been trading profitably.
Key concern: Without current financials, the true solvency and asset quality cannot be verified. The parent company (Five Rivers Child Care Limited) holds >75% control, which could offer group support, but no parent accounts are available for review.
Cash Flow Assessment
As of 2017:
- Cash at bank was £141,763, up slightly from £137,760, suggesting stable liquidity.
- Current liabilities were low relative to cash, indicating a strong working capital position at that time.
- The business provides foster care services (SIC 88990), which typically generates recurring income from local authorities. Cash flow is likely steady but may be subject to contract renewals and payment cycles.
Key concern: No recent cash flow statement or turnover figures are available. The 2017 data is too old to assess current liquidity or debt service capacity.
Monitoring Points
- Up-to-Date Financials: Mandatory to review the latest filed accounts (year ended 30 September 2025) as well as interim management accounts.
- Parent Support: Assess the financial health and willingness of Five Rivers Child Care Limited to support the entity.
- Revenue Trends: Demand for management accounts showing turnover, gross margin, and EBITDA to gauge current trading performance.
- Local Authority Contracts: Understand the concentration and length of contracts with councils, as well as any regulatory changes affecting the sector.
- Director Changes: Note that name shown to subscribers resigned as director in April 2026 – check for any related impact on management stability.