COUNTY FISHERIES LTD

Executive Summary

County Fisheries Ltd is currently facing liquidity challenges indicated by negative working capital and minimal equity, reflecting a fragile financial condition. While operational and compliant with filings, the company relies heavily on director loans, signaling cash flow stress. To improve financial health, enhancing working capital management, securing additional funding, and rigorous cash flow monitoring are critical steps forward.

COUNTY FISHERIES LTD - Analysis Report

Company Number: 13137476

Analysis Date: 2025-07-29 21:00 UTC

Financial Health Assessment for COUNTY FISHERIES LTD (as of 31 January 2023)

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1. Financial Health Score: D

Explanation:
The company shows clear signs of financial stress, primarily due to negative working capital (net current assets are negative) and minimal net asset value. While the company remains operational and solvent on paper, the liquidity position is weak, suggesting potential difficulty in meeting short-term obligations without improving cash flow or securing additional financing.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	12,859	Modest investment in long-term assets, stable over 2 years
Current Assets	51,515	Includes cash, receivables and stock; relatively low for liabilities
Current Liabilities	63,791	Obligations due within one year exceed current assets
Net Current Assets	-12,276	Negative working capital — a symptom of liquidity strain
Total Assets Less Current Liabilities	583	Minimal net asset value showing fragile equity base
Shareholders’ Funds	583	Very low equity, indicating limited buffer for losses
Director Loans Outstanding	Approx. 26,464	Advances from directors indicate reliance on related-party funding

Interpretation of Vital Signs:

• Negative working capital is a critical symptom here, indicating that short-term liabilities exceed short-term assets. This can lead to cash flow difficulties, risking inability to pay suppliers and creditors on time.
• Minimal net assets and equity imply the company has little financial cushion to absorb losses or financial shocks.
• Director loans are significant and increasing, which may reflect challenges in funding operations through regular business cash flows. While this can be a lifeline, it also indicates reliance on insiders rather than external funding or operational cash generation.

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3. Diagnosis

County Fisheries Ltd is exhibiting symptoms of financial distress primarily linked to liquidity and capital structure. The company's financial "vital signs" suggest it is struggling to maintain a healthy cash flow and working capital balance. The negative net current assets indicate that the company may face difficulties meeting its short-term obligations without external support or improvements in cash management.

The low shareholders' funds (equity) and net asset position imply that the business has limited reserves to absorb any operational losses, making it vulnerable to unexpected expenses or downturns. The reliance on director advances to fund operations further underscores underlying cash flow challenges.

However, the company is still active and has met its filing and compliance deadlines, which is a positive sign of ongoing governance and operational continuity.

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4. Recommendations

To improve the financial health and avoid progression to a more serious condition (e.g., insolvency), the company should consider the following actions:

• Improve Working Capital Management:

  • Accelerate receivables collection and negotiate longer payment terms with suppliers to reduce liquidity strain.
  • Review inventory levels to avoid excess stock tying up cash.

• Enhance Cash Flow:

  • Increase sales or pricing where possible to boost cash inflows.
  • Control operational expenses rigorously.

• Capital Injection:

  • Consider formalizing director loans or seek external funding (e.g., bank loans, equity injection) to strengthen the balance sheet and improve liquidity.

• Financial Monitoring:

  • Implement regular cash flow forecasting and scenario planning to anticipate and manage liquidity risks proactively.
  • Monitor key metrics monthly to detect early warning signs.

• Professional Advice:

  • Engage with financial advisors or accountants to review the business model and financial structure, particularly if negative working capital persists.

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