100 CELSIUS LIMITED

1. Credit Opinion: CONDITIONAL

Any credit facility extended to 100 Celsius Limited should be strictly conditional upon a personal guarantee from the sole director and shareholder, Mr Fabio Giovanni Miano. The company operates at a micro-entity scale with a highly volatile financial history, including previous periods of negative equity. Most recently, the FY2025 accounts reveal a concerning deterioration in working capital and a significant build-up of short-term creditors, which strongly suggests cash flow pressure. Unsecured or unguaranteed lending presents an unacceptable risk given the thin equity base and recent trading losses.

2. Financial Strength

The company’s balance sheet is weak and demonstrates high volatility. As of February 2025, total assets stand at just £13,442 against total liabilities of £8,405, leaving net assets of only £4,557. This represents a significant drop from the prior year's net assets of £7,577, indicating that the business incurred a loss of approximately £3,020 during the period (inferred from the reduction in retained reserves, as micro-entities do not file a Profit & Loss account).

Historically, the business has struggled to maintain a stable capital base. The financial history shows deeply negative net assets in FY2020 and FY2021 (around -£7,500), meaning the company was technically insolvent and reliant on creditor forbearance. While it recovered to a positive equity position by FY2022, the recent decline in reserves suggests the business model remains fragile. Furthermore, the share capital is a nominal £110, meaning there is practically no buffer of permanent capital to absorb unexpected losses.

The diverse SIC codes (food services, cleaning, business support, social work) suggest a highly diversified or potentially shifting operational focus, which typically lacks the stability of a focused enterprise.

3. Cash Flow Assessment

Liquidity is under severe pressure. While current assets increased modestly from £11,346 to £13,018, creditors due within one year surged by over 150%—rising from £3,339 to £8,405. As a result, net current assets (working capital) nearly halved, dropping from £8,007 to £4,613. The current ratio has consequently fallen from a comfortable 3.4x to a much tighter 1.55x.

The rapid accumulation of short-term creditors, without a corresponding increase in current assets to cover them, is a classic indicator of cash flow strain. It strongly implies that the company is stretching supplier payments to preserve cash. Given that fixed assets are minimal (£424), the company relies almost entirely on its current assets to meet its obligations. If trade creditors begin to demand payment, the business could quickly face a liquidity crisis.

4. Monitoring Points

• Creditor Payment Trends: Monitor trade creditor ageing closely. The spike in short-term liabilities must be stabilized; further increases without revenue growth will likely trigger insolvency.
• Director's Personal Financial Health: As the sole owner with over 75% control, Mr Miano's personal liquidity is the ultimate backstop for this company. A personal guarantee must be assessed, and ongoing checks should ensure no adverse personal credit events occur.
• Management Accounts: Micro-entity filings provide minimal visibility into trading performance. Request quarterly management accounts to track actual turnover, gross margins, and cash flow to verify that the business can service its debts.
• Filing Compliance: The company is currently up to date with its filing requirements, which is a basic positive. Any delay in future filings should be treated as an immediate early warning sign of distress.