BYRNE SEAFOODS NI LTD

Executive Summary

Byrne Seafoods Ni Ltd is currently in a fragile financial position characterized by negative net assets and a substantial working capital deficit, reflecting liquidity and solvency challenges. The company depends heavily on director loans and must take immediate steps to improve cash flow, reduce liabilities, and strengthen its capital base to avoid escalating financial distress. Prompt operational and financial restructuring is recommended to restore stability and support sustainable growth.

BYRNE SEAFOODS NI LTD - Analysis Report

Company Number: NI688749

Analysis Date: 2025-07-29 14:43 UTC

Financial Health Assessment for BYRNE SEAFOODS NI LTD as of 30 June 2024

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress, primarily indicated by a substantial negative net asset position and working capital deficit. While the business is operational and compliant with filing deadlines, the balance sheet reveals serious liquidity and solvency concerns that require urgent attention to avoid worsening financial health.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£36,379	Low short-term asset base to fund day-to-day operations.
Cash Balance	£31,369	Majority of current assets held as cash, which is a positive sign.
Debtors	£5,010	Relatively small amount owed by customers; manageable but needs monitoring.
Current Liabilities	£96,938	High short-term debts due within one year, creating liquidity pressure.
Net Current Assets	-£60,559	Negative working capital, indicating inability to meet short-term obligations with current assets.
Net Assets (Equity)	-£59,750	Shareholders’ funds are negative, signaling insolvency on a balance sheet basis.
Loans from Directors	£84,761	Significant director loans form a large part of liabilities, highlighting reliance on internal funding.
Employees	0	No employees reported, possibly indicating a small or asset-light business model.

Interpretation:

• The "vital signs" show a company struggling with liquidity – the "pulse" of cash flow is weak due to liabilities far exceeding current assets.
• Negative net assets are a "symptom" of accumulated losses or heavy borrowing, reflecting financial distress.
• The significant director loans suggest the business is currently sustained by internal funding sources rather than operational cash generation.
• No employees may indicate low operational overheads but also potential limitations in scaling or executing business activities.

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3. Diagnosis

The financial "symptoms" of BYRNE SEAFOODS NI LTD indicate a state of financial distress:

• Liquidity Crisis: The company’s current liabilities nearly triple its current assets, creating a negative working capital "deficit" that threatens its ability to meet short-term obligations without additional funding.
• Balance Sheet Insolvency: Negative net assets imply that the company’s total liabilities exceed its total assets, a red flag for solvency and a warning sign of potential financial failure if not addressed.
• Dependence on Director Loans: The large loans from directors show reliance on shareholder funding rather than business-generated cash flow — an unstable condition akin to "life support" rather than healthy independence.
• Early Stage / Small Footprint: Incorporated in 2022 and with no employees, the company may still be in a startup or early growth phase, which can explain some negative balances, but the scale of deficit is concerning.

Overall, BYRNE SEAFOODS NI LTD exhibits "symptoms" typical of a company in financial stress but not yet in formal insolvency procedures such as liquidation or administration.

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4. Recommendations

To improve financial wellness and restore health, the company should consider the following steps:

• Improve Liquidity Management:

  • Accelerate collections on debtors and manage payables to ease cash flow pressure.
  • Consider short-term financing options or restructuring director loans into longer-term arrangements to reduce immediate liabilities.

• Operational Review:

  • Evaluate business model and revenue streams to increase sales and profitability.
  • Introduce cost controls and assess the need for employees or outsourcing to optimize operational efficiency.

• Capital Injection:

  • Seek new equity or additional funding from shareholders or external investors to improve net asset position and reduce reliance on director loans.

• Regular Financial Monitoring:

  • Maintain close monitoring of cash flow forecasts and financial KPIs to detect and address issues early.
  • Ensure timely filing of accounts and returns to maintain regulatory compliance and stakeholder confidence.

• Professional Advice:

  • Engage with financial advisors or turnaround specialists to develop a strategic recovery plan.
  • Consider early warning signs seriously and prepare for possible restructuring if operational improvements are insufficient.

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