HOBBY FISH (LEIGHTON BUZZARD) LTD

Executive Summary

Hobby Fish (Leighton Buzzard) Ltd demonstrates financial distress characterized by sustained negative net assets and working capital deficits over multiple years, signaling weak creditworthiness. Given the current financial profile, extending credit would entail high risk without mitigating assurances. Continuous monitoring of liquidity and capital structure is essential to reassess credit viability in the future.

HOBBY FISH (LEIGHTON BUZZARD) LTD - Analysis Report

Company Number: 12756624

Analysis Date: 2025-07-29 19:10 UTC

1. Credit Opinion: DECLINE
   Hobby Fish (Leighton Buzzard) Ltd exhibits a weak financial position with persistent negative net assets and working capital deficits over recent years. The company’s financials show deterioration from positive net assets at inception (2020) to significant net liabilities by 2024, indicating accumulation of losses and potential solvency concerns. Without evidence of a credible turnaround plan or external capital injection, the risk of default on credit obligations is elevated.

2. Financial Strength:
   The company's balance sheet reveals a declining financial trajectory. While fixed assets have modestly increased (£12,149 in 2023 to £20,184 in 2024), current liabilities exceed current assets by £27,528 in 2024, worsening from £23,092 the prior year, resulting in negative working capital. Additionally, long-term creditors (£29,905 in 2024) further strain the capital structure. Shareholders' funds are negative (£-37,249), reflecting accumulated losses and erosion of equity, undermining financial resilience.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, indicating liquidity strain and potential difficulties in meeting short-term obligations. The company’s working capital deficit suggests reliance on external financing or creditor support to fund operations. No data on cash flows or profitability was provided, but the negative equity and increasing liabilities imply cash generation is insufficient to cover debts. The reduction in average employees from 8 to 5 might reflect cost-cutting but also diminished operational capacity.

4. Monitoring Points:

• Net current assets and working capital trends to detect improvement or further deterioration.
• Profitability metrics and cash flow statements when available to assess operational cash generation.
• Changes in creditors, particularly long-term debt, to evaluate refinancing or restructuring efforts.
• Directors’ commentary or strategy updates regarding turnaround plans or capital injections.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.