Company Number: 14457448

Analysis Date: 2025-07-20 18:26 UTC

1. Credit Opinion: DECLINE
   Apex Brewery Limited exhibits significant credit risk due to its weak liquidity and negative net asset position after its first full financial year of trading. The company’s current liabilities (£733,891) vastly exceed its current assets (£85,542), resulting in a substantial net current liability (£648,349). This imbalance indicates an inability to meet short-term obligations without additional external funding. The negative shareholders’ funds (£45,053) also reflect accumulated losses or initial funding shortfalls, undermining financial stability. Given the magnitude of current liabilities relative to assets and the absence of profitability data, the company currently cannot be relied upon to service debt or commercial credit without substantial improvement or guarantees.

2. Financial Strength:
   The balance sheet shows £603,298 in tangible fixed assets, primarily land and buildings, which is a positive sign of invested capital and potential collateral value. However, the large current liabilities largely negate these assets, leading to a negative total assets less current liabilities figure (£45,051). The minimal share capital (£2) and negative retained earnings suggest the company is still in early development stages or incurring startup losses. The absence of audit and incomplete financial disclosures (no profit and loss statement provided) limits insight into operational performance, but the current financial position reflects a fragile capital base.

3. Cash Flow Assessment:
   Cash at bank is low (£11,053), while trade debtors (£74,489) are sizable but likely illiquid in the short term. The extremely high current liabilities (including trade creditors and other creditors totaling £733,891) pose significant liquidity pressure. Negative net current assets indicate the company is reliant on external funding or equity injections to meet immediate obligations. The company’s cash conversion cycle and ability to convert debtors to cash in a timely manner will be critical, but current data suggests working capital management is under strain.

4. Monitoring Points:

• Liquidity ratios (current ratio, quick ratio) to track improvement or further deterioration.
• Movement in current liabilities and creditor aging profile to assess payment delays or creditor pressure.
• Cash flow from operations and debtor collection efficiency.
• Profitability trends once income statements are filed.
• Any additional capital injections or refinancing efforts.
• Directors’ actions to reduce liabilities or improve working capital.