FOXCROWN LIMITED

1. Risk Rating: MEDIUM

Foxcrown Limited remains balance-sheet solvent with positive net assets of £914,099, and its filing record appears compliant. However, the material one-year fall in net assets and the persistent negative working capital position mean the company carries elevated risk relative to its previous financial trajectory. The limited micro-entity disclosure prevents full verification of profitability and cash flow.

2. Key Concerns

2.1 Significant deterioration in net assets and fixed assets

Net assets fell from £2,211,567 in 2024 to £914,099 in 2025, a reduction of approximately £1.30m (59%). This is almost entirely explained by the decline in fixed assets from £2,502,518 to £1,150,823, a fall of £1.35m. Current assets were broadly flat, so the loss appears concentrated in the fixed asset base. The micro-entity accounts do not disclose whether this reflects a disposal, impairment, revaluation, or another accounting movement. For a property development company, this scale of reduction needs clear explanation.

2.2 Negative working capital

Current liabilities of £1,046,774 exceed current assets of £808,307, leaving net current liabilities of £236,661. Although this is a slight improvement on the 2024 figure of £290,245, the company still cannot settle obligations falling due within one year using its current assets alone. This suggests reliance on refinancing, asset sales, or ongoing creditor support. In property development, timing mismatches are common, but they carry liquidity risk.

2.3 Limited transparency and concentrated ownership structure

As a micro-entity, the company files accounts with no profit and loss account, cash flow statement, or detailed notes. There is no public visibility of revenue, margins, or cash generation. The company is controlled by two directors with the same family name, and a single PSC — Mr Raichand Desaur — has significant influence or control. This concentration increases the importance of reviewing related-party transactions, particularly given the reduction in net assets.

3. Positive Indicators

• Long operating history: Incorporated in 1987, the company has remained active for nearly four decades.
• Positive balance sheet: Net assets remain positive at £914,099, and fixed assets of £1,150,823 exceed total current liabilities.
• Compliant filing record: No overdue accounts or confirmation statement were shown, and no insolvency or liquidation status was identified in the available data.
• Stable current assets: Current assets are effectively unchanged year-on-year at approximately £808k.
• No visible regulatory red flags: No disqualification or enforcement information was provided, and the company appears to be meeting its Companies House obligations.

4. Due Diligence Notes

• Obtain full accounts or detailed schedules to understand the £1.35m fixed asset reduction. Identify disposals, sale proceeds, gains or losses, and whether any sale was made to a connected party.
• Review the composition and maturity of the £1.05m current liabilities — bank facilities, trade creditors, HMRC, director loans, and any intercompany balances. Confirm whether lenders hold security over the company’s assets.
• Assess cash flow, as the micro-entity balance sheet provides no indication of operating cash generation. Determine how the fixed asset reduction was applied — debt repayment, shareholder distributions, reinvestment, or losses.
• Clarify the nature and valuation basis of fixed assets, particularly if they comprise land or development projects. Given the scale of the book-value decline, market value and planning status should be established.
• Check the Companies House charges register for mortgages, debentures, or other security granted to lenders.
• Review director and shareholder loan accounts to ensure any fund movements are properly documented and at arm’s length.
• Confirm going-concern support: with negative working capital, written evidence of committed facilities or shareholder subordination would be prudent.