THE WHISTLING OYSTER (FISHMONGERS) LIMITED

Executive Summary

The Whistling Oyster (Fishmongers) Limited is currently financially distressed with significant net liabilities and negative working capital, raising concerns over its ability to service debt. Despite some cash improvement and tangible assets, the company’s accumulated losses and minimal equity position undermine creditworthiness. Credit approval is declined unless there is strong external support or capital restructuring.

THE WHISTLING OYSTER (FISHMONGERS) LIMITED - Analysis Report

Company Number: 13884249

Analysis Date: 2025-07-29 17:30 UTC

1. Credit Opinion: DECLINE

The Whistling Oyster (Fishmongers) Limited shows significant financial distress with net liabilities of £246k as at 31 March 2024, worsening from £144k the prior year. The company’s current liabilities of £368k far exceed current assets of £33k, indicating working capital deficiency and liquidity risk. Despite directors’ support letters, the absence of equity and accumulated losses undermine confidence in the company's ability to meet debt obligations on a standalone basis. Given the early stage of the business (incorporated 2022) and lack of profitability or retained earnings, credit approval is not recommended without substantial external guarantees or capital injection.

2. Financial Strength

• Net liabilities of £246k reflect negative shareholders’ funds caused by accumulated losses.
• Tangible fixed assets stand at £89k (net book value), down from £115k, showing some asset base but reduced.
• Current assets of £33k (stocks £18k, debtors £3k, cash £11k) are insufficient to cover current liabilities of £368k.
• The company has minimal share capital (£300) and no retained profits.
• The business is loss-making, eroding equity and increasing financial vulnerability.

3. Cash Flow Assessment

• Cash at bank improved from £3.3k to £11.5k but remains low relative to short-term creditors.
• Working capital is deeply negative (-£335k), indicating potential cash flow strain to meet near-term obligations.
• Trade debtors of £1.4k are modest and declining, which may reflect sales or collection challenges.
• Stock levels have increased slightly but are not substantial enough to offset liabilities.
• No indication of short-term borrowing or financing facilities reported; reliance on directors’ support is noted.

4. Monitoring Points

• Track monthly cash flow closely to ensure liquidity sufficiency to meet creditor payments.
• Monitor changes in net current liabilities and seek improvement in working capital.
• Watch for any capital injections or equity increases to rebuild net assets.
• Assess profitability trends in forthcoming accounts to gauge operational viability.
• Review any new borrowing or credit facilities and directors’ ongoing support commitments.
• Observe debtor and stock collection efficiency to reduce cash conversion cycle.