BEER UNDER THE CLOCK LTD

Executive Summary

Beer Under The Clock Ltd is currently financially distressed with significant negative net assets and working capital deficits that impair its ability to service debt. The company’s deteriorating liquidity and solvency position pose high credit risk, warranting a decline of credit facilities absent credible turnaround measures. Close monitoring of cash flows, creditor relations, and management actions is essential for any future reassessment.

BEER UNDER THE CLOCK LTD - Analysis Report

Company Number: 12812054

Analysis Date: 2025-07-19 12:44 UTC

1. Credit Opinion: DECLINE
   Beer Under The Clock Ltd demonstrates weak financial health characterized by persistent and growing negative net assets and net current liabilities. The company’s net liabilities have nearly doubled from £16,807 in 2023 to £30,954 in 2024, indicating deteriorating financial stability. Current liabilities exceed current assets by a significant margin (£54,131 vs £12,839), reflecting poor short-term liquidity and a working capital deficit of £41,292. This raises serious concerns about the company’s ability to meet its immediate obligations and service any new debt. The negative debtor balance and ongoing losses suggest operational and collection issues. Without evidence of a turnaround plan or financial support, the risk of default is high.

2. Financial Strength:
   The balance sheet shows declining fixed assets and intangible assets, with a decrease in tangible assets from £12,043 to £10,074, indicating some asset disposals or write-downs. The company holds minimal share capital (£1.00) and a share premium reserve of £13,500, but these do not offset large accumulated losses (£44,554 negative retained earnings). The shareholder deficit has widened significantly over one year, reflecting sustained losses and insufficient equity buffers. The company is classified under the small company regime and is unaudited, which limits the level of assurance on the financials. Overall, the financial structure is fragile with significant solvency concerns.

3. Cash Flow Assessment:
   While cash at bank has increased from £4,258 to £9,029, this is insufficient relative to the sharp rise in current liabilities (£54,131). The negative net current assets indicate that the company is reliant on external funding or creditor leniency to finance day-to-day operations. The presence of a negative debtor balance (£-624) is unusual and may indicate accounting anomalies or write-offs. The working capital deficit and worsening liquidity position suggest the company is under cash flow stress and may face difficulties in meeting short-term liabilities without additional financing or restructuring.

4. Monitoring Points:

• Monitor quarterly cash flow statements to assess liquidity improvement or further deterioration.
• Track changes in current liabilities and creditor payment terms to evaluate creditor support or pressure.
• Watch for any equity injections or restructuring plans from the controlling shareholder, Andrew Derek Sercombe.
• Review future profitability trends and cost management efforts to determine if losses can be stemmed.
• Confirm timely filing of statutory accounts and confirmation statements to maintain compliance and transparency.