FIZIX INFORMATION TECHNOLOGIES LTD

Executive Summary

Fizix Information Technologies Ltd operates as a niche IT consultancy within a dynamic and competitive sector but currently exhibits financial stress, with negative net assets and working capital in its latest accounts. While benefiting from its incubator location and focused ownership, the company faces challenges typical of early-stage firms in the IT consultancy space, including liquidity management and scaling operations amidst evolving market demands. Strengthening financial stability will be critical for Fizix to improve its standing relative to industry benchmarks and competitors.

FIZIX INFORMATION TECHNOLOGIES LTD - Analysis Report

Company Number: 13550406

Analysis Date: 2025-07-19 12:41 UTC

1. Industry Classification

Fizix Information Technologies Ltd operates within the sector classified under SIC code 62020, which corresponds to "Information technology consultancy activities." This sector is characterised by the provision of expert IT advice, systems integration, software development, and related consultancy services. Companies in this sector typically focus on delivering tailored technology solutions to businesses, often involving software design, implementation, and IT project management. The sector is competitive, innovation-driven, and heavily influenced by rapid technological change and digital transformation trends.

2. Relative Performance

Fizix Information Technologies Ltd is a relatively young private limited company, incorporated in 2021, and classified under the small company exemption regime for accounts. The latest financials (year ending July 2024) show a concerning shift compared to prior years:

• Net assets have swung from a positive £27.4k in 2023 to a negative £41.6k in 2024.
• Net current assets moved from a positive £15.8k in 2023 to a negative £52.9k in 2024.
• Shareholders’ funds decreased sharply from £42.5k to a negative £41.6k.
• Current liabilities increased significantly from £46.9k to £77.3k.
• The company shows a negative trade debtor balance of -£4.3k in 2024, which may indicate receivables write-offs or accounting adjustments, a red flag in working capital management.

Compared to typical small-sized IT consultancy firms, which often maintain positive working capital and shareholders’ equity as a sign of operational stability, Fizix's financial position indicates liquidity stress and potential solvency concerns. The reduction in cash from £7.9k in 2023 to £28.7k in 2024 is an improvement, but given the high current liabilities, the working capital deficiency is significant.

3. Sector Trends Impact

The IT consultancy sector is undergoing rapid evolution driven by trends such as cloud adoption, cybersecurity demand, AI integration, and digital transformation initiatives. Small firms in this space often face challenges competing with larger consultancies that benefit from economies of scale and broader service portfolios. Additionally, the sector is sensitive to macroeconomic conditions that influence corporate IT budgets — economic uncertainty can reduce client spending on consultancy.

For Fizix, operating from a technology incubator in Manchester, these trends imply both opportunity and risk. The firm likely targets niche or emerging technology consultancy services but must manage cash flow prudently to survive competitive pressures. The company's financial stress might reflect the typical early-stage investment phase or difficulties in scaling revenue amid sector competition.

4. Competitive Positioning

Fizix Information Technologies Ltd appears to be a niche player in the IT consultancy sector, with a small workforce (average 1 employee) and limited fixed and intangible assets (£11k). Its shareholder structure is concentrated among three Turkish individuals with significant control, indicating a closely held business.

Strengths:

• Location in a technology incubator suggests access to innovation resources and potential networking advantages.
• The company has maintained compliance with filing deadlines, indicating good governance.

Weaknesses:

• Negative net assets and working capital position suggest financial instability compared to typical peers who maintain positive equity and liquidity.
• Negative trade debtors and increased current liabilities could reflect operational or receivables collection issues.
• Limited scale and resources may constrain competitiveness against established IT consultancies.

Overall, Fizix’s financials do not yet align with sector norms for stable small IT consultancy firms, which generally demonstrate positive equity and working capital. The company may be in an early growth or restructuring phase but will need to address its liquidity and profitability to strengthen its competitive position.