Company Number: 12767705

Analysis Date: 2025-07-20 19:15 UTC

1. Risk Rating: LOW
   FRSF Solutions Ltd demonstrates solid financial health based on the latest filed accounts. The company shows strong net current assets and net assets, increasing year-over-year, with a significant cash balance relative to current liabilities. Filings are current with no overdue returns or accounts, indicating good regulatory compliance.

2. Key Concerns:

• Small scale of operations: The company employs only 2 people, which may limit operational scale and resilience.
• Trade debtors remain constant at £11,592 over three years, which may warrant investigation into collection efficiency or revenue recognition policies.
• Tangible fixed assets are minimal and declining, potentially indicating limited investment in physical capital or infrastructure, which might affect future growth or operational capacity.

3. Positive Indicators:

• Strong liquidity position with cash increasing from £43,451 to £87,794 and net current assets improving to £82,596 in the latest year, indicating good short-term financial flexibility.
• Equity (shareholders’ funds) more than doubled from £53,448 to £87,029, suggesting retained profitability and capital accumulation.
• No overdue filings or compliance issues, reflecting good governance and management attention to statutory obligations.
• Directors are long-standing since incorporation with no adverse records, enhancing governance stability.

4. Due Diligence Notes:

• Clarify the nature of the trade debtors balance and aging profile to assess credit risk and revenue sustainability.
• Review the company’s revenue streams and contracts to understand turnover trends, as turnover information is not disclosed in the filleted accounts.
• Investigate the rationale for the decline in tangible fixed assets and whether this impacts operational capability.
• Confirm absence of contingent liabilities or off-balance sheet obligations not disclosed in the filleted accounts.
• Assess the impact and sustainability of the company's business model given its classification in human resources provision and engineering design activities, considering the small workforce.