Company Number: 14055717

Analysis Date: 2025-07-20 16:27 UTC

1. Credit Opinion: DECLINE
   Crispy Cod (Neath) Limited shows persistent net liabilities and negative working capital, indicating weak financial stability. The company’s net assets are negative (£-8,253) and have deteriorated slightly from the previous year. Current liabilities significantly exceed current assets, leading to a net current liability position of £-46,838, which raises serious concerns about short-term liquidity and the ability to meet immediate obligations. The company is a micro entity operating in a high-risk industry (take-away food) with limited scale and no audit, which adds to the risk profile. Without evidence of improving profitability, cash flow, or capital injection, the company is not currently creditworthy for additional debt.

2. Financial Strength:
   The balance sheet reflects ongoing financial distress. Fixed assets have slightly decreased from £45,266 to £39,835, suggesting some disposals or depreciation. Current assets declined from £13,217 to £7,653, while current liabilities remain high, showing that the company is overleveraged in the short term. Shareholders’ funds remain negative and have worsened, indicating accumulated losses and no retained earnings buffer. The company’s micro-entity reporting and exemption from audit limit the detail available but the trend clearly points to weak capitalization and solvency issues.

3. Cash Flow Assessment:
   The company’s liquidity position is poor. Negative net current assets of £46,838 show an inability to cover short-term debts with available liquid assets. The reduction in current assets and consistently high current liabilities suggests potential cash flow constraints that could impair operational continuity. With an average employee count of only 3 and no mention of significant cash reserves or external funding, the company likely relies heavily on short-term creditor finance or director support, which is not sustainable.

4. Monitoring Points:

• Monthly cash flow and working capital trends to detect improvement or further deterioration.
• Timely filing of next accounts and confirmation statements to ensure transparency and regulatory compliance.
• Any capital injections or restructuring efforts by directors to strengthen equity.
• Changes in current liabilities profile to assess if debts are being managed or growing.
• Profitability and revenue growth indicators to evaluate potential turnaround.
• Director conduct and any changes in control or governance that may affect business stability.