Company Number: 14493200

Analysis Date: 2025-07-20 16:08 UTC

1. Credit Opinion: DECLINE
   Fish-a-rama Ltd presents a weak credit profile marked by significant net liabilities and negative working capital. The company’s net current liabilities have deteriorated from £-201k to £-231k within one year, and net assets worsened from £-80k to £-127k. Such financial distress indicates an inability to meet short-term obligations from available current assets. Furthermore, the company relies heavily on director loans (£228k) with no formal repayment terms, suggesting liquidity constraints and dependence on shareholder support. The business is very small, with only one employee on average in the latest period, limiting operational scale and resilience. Directors have recently changed, but no clear evidence of improved financial management or turnaround is apparent.

2. Financial Strength:
   The balance sheet shows tangible fixed assets net of depreciation of £103.5k, but this is overshadowed by current liabilities of £236k, primarily due to director loans and other creditors. The company’s equity is negative (£-127k), reflecting accumulated losses and insufficient capitalisation. The absence of long-term debt beyond finance leases is positive, but the overall capital structure is fragile. The negative net current assets position signals a working capital deficit that impairs operational flexibility. The small scale of inventories and cash balances (£3.7k and £1.7k respectively) is insufficient to cover short-term liabilities. The company’s financial trajectory is declining, with escalating liabilities and worsening net worth.

3. Cash Flow Assessment:
   Cash at bank increased slightly from £868 to £1,672, but remains minimal relative to liabilities. The company operates a substantial short-term funding gap reflected in net current liabilities of over £230k. The large creditor balance to directors suggests informal financing rather than sustainable cash flow from operations. The lack of formal repayment schedules or interest terms on director loans introduces uncertainty regarding cash flow availability. The decline in employee numbers from 3 to 1 could indicate cost-cutting but also reflects reduced operational capacity. Overall, liquidity is poor, and working capital management appears ineffective.

4. Monitoring Points:

• Monitor director loan balances and any formalisation of repayment terms or conversion to equity.
• Watch for improvements in net current assets and cash flow generation to cover short-term liabilities.
• Assess any changes in operational scale, turnover, and profitability as reported in future accounts.
• Track management changes and their impact on financial discipline and business strategy.
• Monitor filing deadlines to ensure compliance and avoid regulatory penalties.