WEE SHELL FISH LTD

Executive Summary

Wee Shell Fish Ltd is a micro-entity operating in the wholesale and marine fishing sectors with a modest asset base and limited equity. The company’s financial position has weakened over the last year, with reduced working capital and net assets, indicating some financial stress. Credit facilities may be extended on a conditional basis with close monitoring of liquidity and business performance.

WEE SHELL FISH LTD - Analysis Report

Company Number: SC696846

Analysis Date: 2025-07-20 14:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Wee Shell Fish Ltd is a micro-entity with a short operating history since incorporation in 2021. The company shows a modest net asset base of £12,097 as of 30 April 2024, down from £20,838 in the prior reported year. While the business maintains positive net current assets (£6,234), the decline in working capital and net assets indicates some financial stress or contraction. The company operates in wholesale and marine fishing sectors, which can be volatile and sensitive to market and environmental factors. The single director's occupation as a fisherman suggests hands-on industry experience but limited scale or diversification. Given the small scale, modest asset base, and recent decline in net assets, credit facilities should be extended cautiously and likely with conditions such as monitoring of cash flow and prompt repayment terms.

2. Financial Strength:

• Fixed assets increased from £3,726 to £5,863, showing some investment or acquisition of long-term assets.
• Current assets decreased from £39,517 to £30,514, mainly cash or receivables, which reduces liquidity buffer.
• Current liabilities increased slightly to £24,280, resulting in lower net current assets (£6,234 vs £17,112 prior year).
• Overall net assets declined by ~42%, indicating retained losses or dividend payments exceeding profits.
• Share capital is minimal (£100), so the business relies on retained reserves for equity support.
  The balance sheet reflects a fragile financial position with limited equity cushioning and shrinking working capital, which could impair resilience to adverse events.

3. Cash Flow Assessment:

• Positive net current assets suggest the company can meet short-term obligations, but the significant reduction year-on-year is a warning sign.
• The company employs one person (the director), indicating low overhead but also limited operational scale.
• No audit performed, so financial accuracy depends on director’s reporting.
• Cash flow should be closely monitored due to reduced current assets and increased current liabilities, which may pressure liquidity.
• Absence of detailed P&L data or cash flow statements limits deeper assessment, but working capital trends suggest tighter liquidity.

4. Monitoring Points:

• Monitor quarterly management accounts or interim financials for trends in cash balances, receivables, and payables.
• Watch for any increases in current liabilities that could strain liquidity further.
• Track revenue and profitability trends to assess if the decline in net assets continues or reverses.
• Keep under review director’s compliance with filing deadlines and any changes in company status.
• Evaluate market conditions impacting marine fishing and wholesale seafood sectors for external risk exposure.