FISH HOUSING LIMITED

Executive Summary

Fish Housing Limited operates in real estate with substantial fixed assets but currently exhibits negative working capital and minimal cash reserves, raising liquidity concerns. The company has modest profitability and positive net assets, yet the high leverage and short-term liabilities require close monitoring. Credit approval is conditional on assurances of cash flow management and debt servicing capability, with focus on sustaining profitability and liquidity.

FISH HOUSING LIMITED - Analysis Report

Company Number: 13205195

Analysis Date: 2025-07-29 19:37 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Fish Housing Limited is a recently established private limited company (incorporated in 2021) engaged in property letting and operating its own or leased real estate (SIC 68209). The company holds a significant fixed asset base in the form of freehold property valued at £425,081, which underpins its business. However, the company’s current liabilities exceed its current assets, resulting in negative working capital (net current liabilities of approximately £117k). The company also carries a substantial bank loan of £302,621 due between one and two years. While the company has reported a modest profit (£959) for the latest financial year, the low cash balance (£92) and consistent negative net current assets raise concerns about short-term liquidity and the ability to meet immediate obligations without refinancing or asset sales. Credit approval is therefore conditional on additional assurances regarding cash flow management and servicing of debt obligations, possibly through personal guarantees or collateral.

2. Financial Strength
   The company’s net assets are positive but minimal (£5,175), reflecting equity funding and retained earnings of £5,075. The substantial fixed asset base provides some security, but the heavy reliance on bank loans (almost matching the fixed asset value) suggests high financial leverage. The balance sheet indicates stable asset values with no depreciation shown, but the negative working capital position highlights a structural liquidity imbalance. The company’s equity base is very thin, suggesting limited cushion against adverse events or losses. Overall, the financial strength is moderate but heavily dependent on the real estate asset and ongoing support from the principal shareholder.

3. Cash Flow Assessment
   Cash at bank is negligible (£92), which is insufficient to cover current liabilities of over £117k. The company’s negative net current assets indicate a working capital deficit, implying reliance on external funding or long-term assets to meet short-term obligations. There is no evidence of trade debtors or stock to provide liquidity. The profitability reported is modest (profit for the year £959), which while positive, is not strong enough to offset liquidity risks. The company’s ability to service the bank loan and other creditors in the short term appears constrained without additional cash inflows or refinancing arrangements. Monitoring cash flow forecasts and securing liquidity lines will be critical.

4. Monitoring Points

• Liquidity and cash flow management: closely monitor cash balances and working capital movements.
• Debt servicing: track timely repayment of bank loans and creditor payments.
• Profitability trends: observe whether modest profits improve sustainably to build equity.
• Asset valuations: watch for any impairment or changes in property values affecting collateral.
• Director/shareholder support: assess ongoing financial backing from Mrs. Shadan Faisal, who holds 75-100% control.