Company Number: 12820679

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

1. Credit Opinion: DECLINE
   BEERBELLY.STORE LIMITED shows a deteriorating equity position with net assets turning negative (£-4,670) as of the latest accounts (March 2024). The company’s liabilities, particularly long-term creditors (£4,717), exceed assets and working capital is barely positive (£47). This weak balance sheet, combined with minimal current assets (£1,983) and persistent reliance on creditors, indicates limited capacity to service debt or absorb financial shocks. The micro-entity status and single employee suggest limited operational scale and resource base. Without material improvement in equity or cash flow, extending credit would represent high risk.

2. Financial Strength:
   The financial statements reveal net liabilities, declining net current assets, and a negative shareholder’s funds trend (from £509 in 2020 to £-4,670 in 2024). The company’s fixed assets are not disclosed, implying a probable lack of significant tangible assets. Current liabilities have remained static at £4,717, indicating ongoing creditor obligations not reduced over five years. The net asset erosion points to accumulated losses or funding gaps. Overall, the balance sheet is weak, showing low financial resilience.

3. Cash Flow Assessment:
   Working capital is marginally positive (£47) but has plunged from £631 in 2021. Current assets (£1,983) roughly cover short-term liabilities (£1,936), but the company carries substantial long-term debt (£4,717) that must be serviced. The absence of audit and limited disclosures restrict detailed cash flow judgement, but the static creditor levels and negative net equity suggest poor liquidity management. Cash flow constraints are likely, raising concerns about ongoing operational funding and creditor payments.

4. Monitoring Points:

• Track net asset trends and shareholder fund changes in future filings for signs of recovery or further decline.
• Monitor creditor balances and working capital fluctuations to assess liquidity adequacy.
• Watch for any changes in long-term debt arrangements or capital injections by shareholders.
• Review director and significant control party actions for financial restructuring or risk mitigation.
• Evaluate any operational growth or diversification that could improve cash generation capacity.