Company Number: 12805847

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

1. Credit Opinion: DECLINE
   Beerginvino Ltd presents a weak credit profile. The company has sustained net liabilities for three consecutive years, with net assets deteriorating from £12,381 positive in 2021 to a negative £7,661 in the latest 2024 accounts. The persistent negative net current assets and net liabilities indicate ongoing financial distress. Despite directors' support via loans, there is no evidence of returning profitability or improved balance sheet strength. The company’s ability to meet short-term obligations is impaired, and reliance on director funding undermines independent operational liquidity. Given these risks, extending credit without significant guarantees or restructuring would be imprudent.

2. Financial Strength:
   The balance sheet shows a declining trend: fixed assets have been fully depreciated from £9,601 in 2021 to just £400 in 2024, while net current liabilities have increased from £-1,159 in 2020 to £-8,061 in 2024. Total liabilities due within one year (£38,360) exceed current assets (£30,299), resulting in a working capital deficit. Negative shareholders’ funds reflect accumulated losses eroding equity. The company is categorized as a small private limited company operating in retail sale of beverages and food via market stalls and specialized stores, a sector with potentially low margins and high competition, further challenging financial recovery.

3. Cash Flow Assessment:
   Cash balances remain relatively stable around £30,000, suggesting some liquidity but insufficient to cover current liabilities of over £38,000. Debtors and stock levels are minimal and have decreased, indicating limited working capital buffer. The company has no employees currently, which may reduce operational costs but also limits revenue generation capacity. The directors’ commitment to provide financial support is noted but does not substitute for sustainable cash flows from operations. The negative net current assets and reliance on director loans highlight liquidity strain and operational cash flow insufficiency.

4. Monitoring Points:

• Monitor quarterly cash flow statements to detect further liquidity deterioration.
• Watch for improvement in net current assets turning positive, indicating better working capital management.
• Review director loan balances and any new funding commitments as a sign of ongoing support.
• Track turnover and profitability trends once full accounts including profit & loss are available to assess operational recovery.
• Assess any changes in market conditions or business strategy that could impact financial health.