P A FISHER AND SON LTD

Executive Summary

P A Fisher and Son Ltd has experienced a significant financial decline in the latest year, moving from positive net assets to a net liability position with a working capital shortfall. Liquidity has worsened sharply, with cash and debtors halving and current liabilities remaining high, raising concerns about their ability to meet obligations. Given this financial stress and limited visibility on profitability, credit approval is not recommended without substantial mitigating factors.

P A FISHER AND SON LTD - Analysis Report

Company Number: 14368539

Analysis Date: 2025-07-20 18:45 UTC

1. Credit Opinion:
   DECLINE. P A Fisher and Son Ltd’s latest financials reveal a reversal from positive net assets of £13,051 in 2023 to negative shareholders’ funds of £11,575 in 2024. The company shows a working capital deficit and declining liquidity, with current liabilities exceeding current assets by £3,964. This deterioration within a single year raises concerns about the firm's ability to meet short-term obligations and service any new credit facilities without significant risk. The absence of an income statement limits insight into profitability, but the balance sheet trend indicates financial distress.

2. Financial Strength:
   The company has a net liability position as of March 2024, with negative shareholders’ funds of £11,575, down from a positive net asset base the prior year. Fixed assets have reduced by approximately £10,000, possibly due to depreciation or disposals, while current assets have halved mainly due to a sharp drop in debtors and cash balances. Current liabilities remain high at over £50k, including bank loans, hire purchase, and director loans. The company also carries deferred tax provisions, and the directors’ current account loan has decreased but remains significant at £11,534. Overall, the balance sheet is weak with insufficient equity buffer and deteriorating net asset value.

3. Cash Flow Assessment:
   Cash at bank has fallen from £29,204 to £5,914, indicating a significant cash outflow or cash utilization during the year. Trade debtors have also dropped by more than half, which may reflect lower sales or improved collections. However, current liabilities remain substantial, creating a liquidity strain reflected in negative net current assets. The working capital deficit suggests the company may struggle to meet immediate obligations without relying on external funding or director loans. The directors’ loan balance reduction reduces internal liquidity support, potentially adding pressure.

4. Monitoring Points:

• Track quarterly cash flow and current ratio to monitor liquidity improvements or further deterioration.
• Review debtor ageing and collections efficiency to assess potential cash inflows.
• Monitor creditor payment patterns and any supplier pressure or credit tightening.
• Watch for any new borrowing or director loans that might shore up liquidity but increase leverage.
• Obtain management commentary or forecasts to understand turnaround plans or restructuring efforts.
• Verify subsequent filings and confirm no overdue accounts or confirmation statements to avoid regulatory risks.