Company Number: 13365718

Analysis Date: 2025-07-20 18:05 UTC

1. Credit Opinion: DECLINE
   Fika Hackney Ltd is currently in the process of ceasing trade, as disclosed in the latest accounts. This is a significant negative indicator for creditworthiness, as it signals imminent closure or insolvency risk. Although the company shows positive net assets, the reduction in current assets and sharp increase in current liabilities in the latest year suggest liquidity pressures. Given the planned cessation of operations, the company lacks capacity to service new or existing debt obligations reliably.

2. Financial Strength:
   The company is classified as a micro-entity with modest fixed assets (£85.5k) and net assets of £99.5k as at April 2024. Net current assets decreased substantially from £109k in 2023 to £26k in 2024, primarily due to current liabilities increasing from £51k to £74k, indicating deteriorating short-term financial health. There is also a small long-term creditor balance (£11.3k). Shareholders’ funds have declined from £108k to £99k, reflecting possible losses or capital withdrawals. The balance sheet remains positive but fragile, with declining liquidity and the risk associated with ceasing trade.

3. Cash Flow Assessment:
   Current assets decreased notably by 40% year-on-year, while current liabilities increased by over 44%. The working capital position is weakening, which may constrain operational cash flows. The small size of the company and limited asset base further restrict financial flexibility. The disclosed cessation of trade implies that cash inflows will likely reduce sharply, impairing the ability to meet short-term obligations.

4. Monitoring Points:

• Confirmation of formal insolvency or liquidation proceedings.
• Cash flow forecasts and creditor payment performance.
• Changes in directors or ownership that may impact decision making.
• Any new filings indicating reversal of cessation plans or restructuring.
• Update on payable and receivable ageing to assess liquidity pressures.