Company Number: 15198767

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

1. Credit Opinion: DECLINE

Fig Hygiene Ltd is a newly incorporated private limited company (Oct 2023) operating in the manufacture of household and sanitary goods. Its latest financials for the period ending 31 December 2024 reveal significant financial stress. The company reports current liabilities of £43,338 against current assets of only £21,985, resulting in a net current liability (working capital deficiency) of £21,353. Shareholders’ funds are negative by £21,453, indicating the company is technically insolvent on a net asset basis. The absence of an audit and limited financial disclosure (no P&L included) limits insight into profitability or cash generation. With only 2 employees and minimal cash (£1,712), liquidity is very tight.

Given these signs of weak financial strength, negative equity, and lack of operational track record, the company is not currently in a position to service any external debt or credit facilities beyond very limited trade credit. Its ability to generate sustainable cash flow and profitability is unproven. Additionally, the main shareholder is a corporate entity (Spanish Investments Ltd) controlling over 75%, which may influence risk but does not mitigate the fundamental financial weakness.

2. Financial Strength:

• Negative net assets (£-21,353) and shareholders’ equity (£-21,453) demonstrate insufficient capitalisation.
• Working capital deficiency indicates immediate liquidity pressure.
• Stock of £17,557 represents the bulk of current assets but may be illiquid or slow-moving.
• Debtors are low (£2,716) and cash balance is minimal (£1,712).
• The company employs only 2 people, consistent with micro/small scale.
• No audit and no profit/loss disclosure restrict analysis of operational profitability or trends.
• The extended accounting period to align with group reporting suggests affiliation but no financial support evidence provided.

3. Cash Flow Assessment:

• Cash at bank is very low (£1,712), insufficient to cover short-term creditors (£43,338).
• Current liabilities dominated by trade creditors (£41,827) and other creditors (£1,500), indicating reliance on supplier credit.
• Net current liabilities highlight poor liquidity and risk of insolvency if creditors press for payment.
• No indication of cash flow from operations or financing, making the funding gap unclear.
• The company’s financial statements highlight exemption from audit, which may suggest limited internal controls or governance at this stage.

4. Monitoring Points:

• Timely filing of next accounts and confirmation statements to monitor financial evolution.
• Changes in net current assets and shareholders’ funds to track solvency improvement or deterioration.
• Cash flow trends and ability to reduce trade creditor balances.
• Profitability metrics once P&L is disclosed.
• Any external financing or capital injection to improve liquidity and equity.
• Directors’ conduct and governance given the small management team and significant external shareholder.