Company Number: 13790477

Analysis Date: 2025-07-20 16:58 UTC

1. Credit Opinion: DECLINE
   Fable and Bear Ltd. shows persistent negative net current assets and shareholders’ funds over the last three years, indicating ongoing liquidity and solvency challenges. The company is reliant on significant director financing (£22,826 as of 2023) to meet current liabilities, which is interest-free and repayable on demand but currently deferred. This reliance on director loans rather than operational cash flow raises concerns about the company’s ability to service external debt or new credit facilities. The absence of employees and the small asset base suggest limited operational scale and financial resilience. Without a clear pathway to profitability or improved working capital, extending credit would expose the bank to elevated risk.

2. Financial Strength:
   The balance sheet reflects a weak financial position. Fixed assets are minimal (£285 in 2023), with current assets at £22,420 mainly composed of stock (£12,216) and debtors (£8,591). However, current liabilities stand at £23,576, producing a negative net current asset position (-£1,156) and overall net liabilities of £871. Shareholders’ funds remain negative (-£971), though this is a slight improvement from previous years. The director’s loan account constitutes the largest creditor and masks the true shortfall in working capital. The company’s financial trajectory shows some improvement in total current assets from 2022, but liabilities have grown proportionally, maintaining poor financial health.

3. Cash Flow Assessment:
   Cash on hand is low at £1,613, insufficient to cover short-term obligations of £23,576. The company depends heavily on the director’s loan account for liquidity, which while interest-free and flexible, is not a sustainable source for external creditors. Debtor balances have increased significantly but may not be readily collectible, and stock levels have risen sharply, potentially tying up cash in inventory. The absence of employees suggests minimal operating expenses but also low revenue generation capacity. Overall, cash flow appears constrained with negative working capital and limited internal cash generation.

4. Monitoring Points:

• Track changes in net current assets and working capital to gauge liquidity trends.
• Monitor director’s loan account balances and any repayments or additional funding.
• Review debtor collection efficiency and stock turnover to ensure cash conversion.
• Watch for the company’s ability to file timely accounts and confirmation statements.
• Assess any changes in business scale, such as employee numbers or turnover, which could impact financial strength.