ARIIBA SPIRITS LIMITED

Executive Summary

ARIIBA Spirits Limited is currently in a weak financial position with negative net assets and insufficient liquidity to meet short-term liabilities. The company relies heavily on director and shareholder support to continue as a going concern, with minimal operational evidence of cash generation. Given these risks, credit approval cannot be recommended at this stage without significant financial improvement or external guarantees.

ARIIBA SPIRITS LIMITED - Analysis Report

Company Number: SC683347

Analysis Date: 2025-07-29 20:25 UTC

1. Credit Opinion: DECLINE
   ARIIBA Spirits Limited shows weak financial health with net current liabilities of £1,445 as of 31 December 2024 and negative shareholders' funds of £1,446. The company has minimal cash (£1) and owes significant amounts (£1,446) due within one year, indicating poor liquidity and inability to meet short-term obligations. There is no record of employees or operational scale to suggest imminent improvement. The going concern assumption is supported only by director and shareholder financial backing, not by operational cash generation. This exposes the bank to high credit risk and repayment uncertainty.

2. Financial Strength:
   The balance sheet reveals a deterioration from positive net assets of £1 in 2023 to a deficit of £1,445 in 2024. Total assets less current liabilities are negative, and retained earnings have moved into significant losses. The minimal share capital (£1) and lack of fixed assets further weaken the company’s financial base. The absence of audit and income statement details limits visibility but does not mitigate concerns about solvency.

3. Cash Flow Assessment:
   Cash on hand remains nominal at £1, with creditors due within one year amounting to £1,446, resulting in a negative working capital position. This indicates the company does not generate sufficient cash flow from operations or other sources to cover immediate liabilities. The company's liquidity profile is precarious, raising doubts about its capability to service debt or fund operations without external injections.

4. Monitoring Points:

• Regular updates on cash flow and liquidity position, especially any changes in short-term creditor balances.
• Directors’ and shareholders’ continued financial support and evidence of operational cash inflows.
• Any changes in business strategy or asset acquisition that could improve financial strength.
• Timely filing of accounts and confirmation statements to maintain transparency and compliance.