Company Number: 13917561

Analysis Date: 2025-07-29 20:33 UTC

Financial Health Assessment Report for I WANT FISH & CHIPS LTD

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1. Financial Health Score: C

Explanation:
The company shows marked improvement in its financial position over the last year, moving from a negative net asset position to a positive one. However, the company still exhibits some vulnerabilities, particularly in working capital management and liquidity. The score "C" reflects a company in recovery with early signs of stability but with areas needing attention to ensure sustained financial health.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	6,822	9,122	Slight reduction in long-term assets; stable asset base.
Current Assets	9,775	11,135	Decrease mainly in debtors; cash increased significantly, indicating better liquidity management.
Cash	9,475	4,745	Healthy increase in cash reserves—positive cash flow signal.
Debtors	300	6,390	Significant reduction in receivables—improved collections or lower sales on credit.
Current Liabilities	10,948	23,130	Almost halved liabilities due within one year—reduced short-term debt pressure.
Net Current Assets (Working Capital)	-1,173	-11,995	Negative but much improved; slight short-term liquidity risk remains.
Net Assets (Shareholders' Funds)	5,649	-2,873	Turned positive after previous losses—sign of recovering equity base.
Share Capital	2	2	Minimal share capital; equity growth mainly from retained earnings or profit.

Interpretation of Vital Signs:

• Healthy cash flow: The near doubling of cash reserves is a very positive sign, showing improved liquidity.
• Symptoms of distress (previous year): Large negative working capital and net assets indicated financial strain.
• Recovery signs: Reduction in current liabilities and debtors shows better operational management.
• Remaining concerns: Negative net current assets mean the company may still face short-term cash flow pressures, requiring careful monitoring.

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3. Diagnosis

I WANT FISH & CHIPS LTD is in a phase of financial recovery. The key "symptoms" observed in the prior financial year—negative net assets and substantial short-term liabilities—have improved significantly. The company has strengthened its liquidity position with more cash on hand and reduced debtor balances, which helps ease short-term obligations.

However, the working capital remains slightly negative, indicating the company may still face challenges meeting all short-term liabilities without tapping into long-term resources or external financing. The fixed assets base has slightly decreased, reflecting possible disposals or amortisation/depreciation, but this is not a major concern given the overall improving financial position.

The positive net asset position signals that the company has moved from a state of financial distress to one of cautious stability. This is an encouraging sign but the company should consider this a critical recovery period where maintaining strong cash flow and managing liabilities will be essential.

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4. Recommendations

1. Improve Working Capital Management:
   Aim to convert the slight negative working capital into positive by either increasing current assets (e.g., cash or receivables) or further reducing current liabilities. Negotiating better payment terms with suppliers or accelerating receivables collection will help.

2. Maintain Healthy Cash Reserves:
   Continue to monitor cash flow carefully to avoid liquidity crunches. Consider building a cash buffer for operational flexibility.

3. Monitor Debtor Levels:
   The dramatic drop in debtors is positive but ensure that this is sustainable and not due to lost sales. Maintain a balance between sales growth and credit risk.

4. Regular Financial Review:
   Given the company’s young age (incorporated 2022) and recovery status, implement monthly or quarterly financial health checks to catch any adverse trends early.

5. Plan for Growth Safely:
   While the company is improving, avoid overextending credit or incurring unnecessary debt. Growth should be supported by solid cash flow and profitability.

6. Engage Professional Support:
   Continue leveraging accountancy and financial advisory services to maintain compliance and implement best financial practices, especially given the company’s unaudited abridged accounts status.

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