ONE BIG FISH LIMITED

Executive Summary

ONE BIG FISH LIMITED is a newly incorporated business showing early signs of financial stress with negative working capital and shareholders’ funds. The company faces liquidity challenges due to limited cash and high short-term liabilities. Swift action to improve cash flow, secure additional funding, and control costs will be critical to stabilizing and strengthening its financial condition.

ONE BIG FISH LIMITED - Analysis Report

Company Number: 14739513

Analysis Date: 2025-07-29 12:57 UTC

Financial Health Assessment for ONE BIG FISH LIMITED

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1. Financial Health Score: D

Explanation:
The company shows early signs of financial distress with net current liabilities and negative shareholders' funds shortly after incorporation. The lack of positive net assets and working capital suggests challenges in liquidity and solvency, warranting attention to improve financial stability.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	15,796	Includes cash and receivables; moderate short-term resources.
Cash	977	Very limited immediate cash available; "weak pulse" for liquidity.
Debtors	14,819	Majority of current assets tied up in receivables; risk if not collected timely.
Current Liabilities	18,341	Obligations due within one year exceed current assets, causing working capital deficit.
Net Current Assets (Working Capital)	-2,545	Negative working capital signals liquidity strain; symptoms of cash flow stress.
Net Assets	-2,545	Company has liabilities exceeding assets; indicates insolvency risk.
Shareholders' Funds	-2,545	Equity is negative, reflecting accumulated losses or undercapitalization.

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3. Diagnosis: Financial Condition Overview

ONE BIG FISH LIMITED is a recently incorporated private limited company operating in business support services. The financial "vital signs" reveal a concerning liquidity position—current liabilities outstrip current assets, resulting in a working capital deficit. This means the company may face difficulties meeting short-term obligations as they fall due, putting pressure on operational continuity.

The very low cash balance (less than £1,000) acts like a "weak heartbeat," suggesting limited buffer to weather unexpected expenses or delays in debtor payments. The high proportion of current assets tied up in debtors underscores a dependency on prompt collections to maintain cash flow.

Negative net assets and shareholders’ funds reflect that the company has started with a small capital base (£100 share capital) and has already absorbed losses of about £2,645 in its first operational period. While this is not unusual for a start-up, it highlights the need for capital infusion or improved profitability to stabilize financial health.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Cash Flow Management:
  Prioritize collecting outstanding debts faster to convert receivables into cash. Consider tighter credit control policies or incentives for early payment.

• Increase Working Capital:
  Explore options for additional capital injection from shareholders or external funding to bolster liquidity and cover short-term liabilities.

• Cost Control and Revenue Growth:
  Monitor and reduce operating expenses carefully. Focus on boosting turnover through marketing or new client acquisition to enhance profitability and build retained earnings.

• Regular Financial Monitoring:
  Institute monthly cash flow forecasting and review to detect liquidity issues early, avoiding surprises and maintaining a "healthy pulse."

• Engage Professional Advice:
  Seek financial consultancy or business advisory support to develop sustainable financial planning and identify funding opportunities.

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Medical Analogy Summary

The company’s financial "vital signs" show symptoms of distress—negative working capital and net assets are like a patient with low blood pressure and poor circulation, indicating the business is not yet in a "healthy" state. Immediate interventions to improve liquidity and capital structure are necessary to avoid worsening financial health.

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