CODEFISH LTD

Executive Summary

Codefish Ltd operates within the competitive UK IT consultancy sector but currently exhibits financial distress, including negative net assets and working capital shortages, which is atypical for stable small consultancies. Sector trends favor digital transformation services, yet the company’s limited resources and declining liquidity position undermine its competitiveness and growth potential. Addressing these financial challenges is critical for Codefish Ltd to sustain operations and capitalize on emerging market opportunities.

CODEFISH LTD - Analysis Report

Company Number: 13012373

Analysis Date: 2025-07-20 18:28 UTC

1. Industry Classification
   Codefish Ltd operates primarily in the "Information technology consultancy activities" sector, classified under SIC code 62020. This sector encompasses businesses providing expert advice and services related to IT systems, software development, and digital transformation. Key characteristics include high dependency on skilled personnel, project-based revenue streams, rapid technological change, and competitive pressures from both large consultancies and niche specialist firms.

2. Relative Performance
   Codefish Ltd is a small private limited company with minimal share capital (£100) and a single director. Its financials reveal a deteriorating net asset position, moving from positive net assets of £6,641 in 2020 to net liabilities of £2,287 by 2024. Current liabilities exceed current assets by £2,410 in 2024, indicating working capital challenges. Cash reserves have drastically declined from nearly £19,851 in 2021 to £452 by 2024, while trade debtors remain significant but have slightly decreased. Compared to typical small IT consultancy firms, which generally maintain positive working capital and manageable debt levels, Codefish Ltd’s financials suggest liquidity constraints and potential operational difficulties.

3. Sector Trends Impact
   The UK IT consultancy sector is currently influenced by rising demand for digital transformation post-COVID-19, increased adoption of cloud computing, AI integration, and cybersecurity services. However, smaller firms face intense competition from global consultancies and large tech firms offering bundled services. Additionally, economic uncertainty and tightening IT budgets can pressure smaller consultancies’ cash flow and contract acquisition. Codefish Ltd’s worsening financial position may reflect challenges in securing profitable contracts or managing costs amid these market dynamics.

4. Competitive Positioning
   Strengths:

• The company’s continued operation since 2020 indicates some resilience.
• Focus on consultancy activities allows potential to leverage niche expertise in IT advisory services.
  Weaknesses:
• Negative net assets and ongoing working capital deficits suggest financial instability uncommon for healthy peers in the sector.
• Minimal share capital and a single director limit corporate governance and resource base.
• Declining cash reserves could hinder the company’s ability to invest in technology or talent, critical in IT consultancy.
• No indication of diversification or expansion that might mitigate competitive pressures.

Overall, Codefish Ltd appears to be a small-scale, niche player struggling with financial sustainability in a highly competitive and evolving IT consultancy market. Its financial trajectory indicates urgent need for strategic adjustments, improved cash management, or capital injection to align with sector norms and leverage growth opportunities.