PHOENIX FM(UK) LIMITED

Credit Opinion: CONDITIONAL APPROVE

The company is profitable on a balance-sheet basis, holds a strong liquidity position, and has no long-term debt. A conditional approval is appropriate because the accounts are micro-entity only—no profit and loss account, cash flow statement, or audit is filed—and the business is dependent on one individual, Xxxxxx Xxxxxxxxname shown to subscribers, as sole director and 75%+ shareholder. Approval should be limited to modest facilities relative to the company’s demonstrated profit retention, supported by personal guarantee/security and periodic management information.

Financial Strength

• Net assets at 30 September 2025: £219,155, up £14,891 (7.3%) from £204,264 in 2024. This represented retained growth for the year, before any director drawings or dividends.
• The trajectory is strong: net assets have grown from £647 in 2020 to £219,155 in 2025, showing the business recovered well from the pandemic trough and has compounded its capital base.
• Balance sheet structure is conservative:
• Fixed assets: £13,184 (modest, appropriate for a facilities services company)
• Current assets: £267,807
• Current liabilities: £61,836
• Net current assets: £205,971
• No long-term creditors disclosed.
• Current ratio is approximately 4.3x, providing a substantial buffer against short-term payment shocks.
• Debt burden is low: current liabilities are only 28% of net assets; there is no evidence of bank borrowings or finance leases.

Cash Flow Assessment

The micro-entity accounts do not include a cash flow statement or profit and loss account, so cash generation must be inferred from the balance sheet movement:

• Equity increased by £14,891 in FY2025, indicating positive retained earnings after tax/drawings.
• Working capital improved: net current assets rose from £198,049 to £205,971.
• Current liabilities stayed broadly flat (£62,417 → £61,836), suggesting the business is not dependent on stretching creditors.
• Cash itself is not separately disclosed in the latest filing, so we cannot verify the split between cash, debtors, and other current assets. This is a key information gap.
• Average employee count held steady at 33, implying revenue scale was maintained without workforce reductions.

Monitoring Points

• Cash position and debtor quality: Request current and historical bank statements, aged debtor reports, and confirmation of any concentration in top clients.
• Profitability verification: Obtain the company’s tax computation or management accounts to confirm actual EBITDA and net profit, since filed micro-entity accounts do not show revenue or margins.
• Director dependency: Xxxxxx Xxxxxxxxname shown to subscribers is sole director and controlling shareholder. Key person insurance or a credible succession plan should be considered, especially for any unsecured lending.
• Dividend/drawing policy: Ensure shareholder withdrawals do not erode the current strong net asset position.
• Working capital covenant: Consider a minimum current ratio covenant of 2.0x to maintain headroom.
• Sector pressures: Facilities support is labour-intensive and often low-margin; monitor employee costs, client contract renewals, and any tribunal or employment claims.
• Filing compliance: Currently clean. Any future late filing or confirmation statement slippage should trigger early review.

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