Company Number: 12630984

Analysis Date: 2025-07-20 16:08 UTC

Financial Health Assessment: AMAZONIA BRASIL LIMITED

---

1. Financial Health Score: D

Explanation:
The company’s financial position exhibits concerning signs of distress with a deeply negative net asset position and significant creditor obligations compared to current assets. Despite being active and compliant with filing deadlines, the financial “vital signs” suggest liquidity challenges and potential solvency risks that need urgent management attention.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	1,583	2,279	Very low liquid assets; insufficient to cover short-term debts.
Current Liabilities	45,853	25,429	Substantial short-term obligations; increased significantly year-on-year.
Net Current Assets (Working Capital)	-44,270	-23,150	Negative by a large margin, indicating poor short-term liquidity and inability to cover immediate debts.
Net Assets (Shareholders’ Funds)	-44,270	-23,150	Negative net worth; company’s liabilities exceed its assets by a wide margin, a serious red flag.
Share Capital	2.82	2.82	Nominal share capital, indicating minimal paid-in equity investment.
Employees	1	1	Very small operation size; limited human resource base.

---

3. Diagnosis

Symptoms of distress:

• The company’s balance sheet reveals a severe liquidity shortage. The "healthy cash flow" equivalent here—current assets—is minimal (£1,583), while current liabilities are extremely high (£45,853), creating a "cash flow blockage" scenario.
• The negative net current assets (working capital) of £44,270 shows the company cannot meet its short-term debts from liquid assets.
• The net assets are also negative by the same amount, indicating that total liabilities exceed total assets, reflecting insolvency risk.
• The doubling of current liabilities in one year from £25,429 to £45,853 signals escalating financial pressure.
• The business is in the wholesale sector of coffee, tea, cocoa, and spices, which typically requires inventory and supplier payments; the current financial “symptoms” could indicate strained supplier relationships or credit terms.
• Despite these financial stresses, the company remains active and compliant with regulatory filings, suggesting management is engaged but may need strategic intervention.

---

4. Recommendations

• Immediate liquidity management: Prioritize converting any available assets to cash and negotiating payment terms with creditors to avoid insolvency or legal action.
• Capital injection: Consider raising additional equity or obtaining short-term financing to strengthen the balance sheet and cover liabilities.
• Cost control and operational review: Conduct a thorough review of expenses and operations to identify cost-saving opportunities and improve cash flow.
• Engage professional advice: Seek financial restructuring assistance to explore turnaround options, including creditor negotiations, potential refinancing, or business model adjustments.
• Regular financial monitoring: Implement enhanced cash flow forecasting and financial reporting to detect and address future liquidity issues promptly.
• Strategic business planning: Examine the market and supply chain to optimize purchasing and sales cycles, reducing working capital requirements.

---