Company Number: 13438647

Analysis Date: 2025-07-20 17:17 UTC

1. Credit Opinion: DECLINE
   Fizz&Friends Ltd demonstrates significant financial distress with persistent negative net assets and shareholders' funds over multiple years. The company’s current liabilities far exceed its current assets, resulting in a large working capital deficit. This indicates severe liquidity constraints and an inability to meet short-term obligations without external support. The absence of an income statement limits insight into profitability, but the consistent deterioration in net asset position suggests ongoing losses. Given this financial profile, the risk of default is high, and granting credit would be imprudent without substantial mitigating factors such as strong personal guarantees or significant capital injection plans.

2. Financial Strength:
   The company’s balance sheet is weak and deteriorating. As of 30 June 2024, net current liabilities stand at £32,342 and shareholders’ funds are negative at £26,454. Tangible fixed assets are modest (£5,888), providing limited collateral value. The negative equity and increasing deficit from prior years reflect accumulated losses and eroded capital. The company is classified as a small private limited entity with minimal share capital (£100), which offers little buffer against financial shocks.

3. Cash Flow Assessment:
   Cash on hand is minimal (£532), insufficient to cover current liabilities of £32,874. The company exhibits a severe working capital deficiency, indicating poor liquidity and an inability to fund day-to-day operations from current assets alone. Without adequate cash flow generation or external financing, meeting creditor demands and operational expenses will be challenging. The lack of detailed cash flow statements restricts deeper analysis, but the balance sheet position strongly implies negative operating cash flows.

4. Monitoring Points:

• Track improvements in working capital and cash balances to assess liquidity recovery.
• Monitor reductions in current liabilities relative to current assets.
• Review any forthcoming filings for profit or loss details to gauge operational viability.
• Observe director actions regarding capital restructuring or debt refinancing.
• Watch for delays in filing accounts or confirmation statements as early warning signals of distress.