Company Number: 12510183

Analysis Date: 2025-07-29 17:50 UTC

1. Credit Opinion: DECLINE
   Phoenix Fit Ltd exhibits significant and persistent negative net assets and net current liabilities over the last four years, indicating ongoing financial distress. The company’s liabilities consistently exceed its assets, with net liabilities worsening from £-25,756 in 2023 to £-59,711 in 2024. This weak balance sheet, combined with negative working capital and a small employee base, raises serious concerns about its ability to meet short-term obligations and repay any additional credit facilities. The absence of positive equity or evidence of profitability suggests that extending credit would carry a high risk of default.

2. Financial Strength:
   The company’s fixed assets have decreased from £100,445 in 2021 to £63,582 in 2024, while current assets remain roughly stable around £74k. However, current liabilities remain very high at approximately £187k, resulting in net current liabilities exceeding £120k consistently. Negative net assets indicate accumulated losses and insufficient capital reserves to absorb financial shocks. The company’s micro-entity classification and limited share capital (£10) further limit its financial flexibility.

3. Cash Flow Assessment:
   The large negative working capital position (net current liabilities of £121,293 in 2024) signals liquidity constraints. The company’s current liabilities are more than twice its current assets, suggesting difficulties in covering short-term debts. The reduction in fixed assets may indicate asset sales to fund operations, but no cash or profit data is provided to confirm this. The average employee count of four also implies a small operational scale which may limit cash inflows. Overall, liquidity risk is high.

4. Monitoring Points:

• Monitor changes in net current assets to detect any improvement in liquidity.
• Watch for updated profit and loss data to assess operating performance trends.
• Track any changes in director appointments or company status indicating restructuring or distress.
• Review forthcoming filings for signs of increased borrowing or asset disposals.
• Keep an eye on any overdue filings or regulatory compliance issues.