ELIXIR BEVERAGES LIMITED

Executive Summary

Elixir Beverages Limited is a newly incorporated micro-entity exhibiting severe financial weakness with negative net assets and a significant liability burden. The company’s current financial position does not support credit extension at this time. Close monitoring of liquidity improvements and capital restructuring is essential before reconsidering credit facilities.

ELIXIR BEVERAGES LIMITED - Analysis Report

Company Number: 14722528

Analysis Date: 2025-07-29 13:45 UTC

1. Credit Opinion: DECLINE
   Elixir Beverages Limited shows significant financial distress with net liabilities of £23,823 as of 31 March 2024. The company’s current liabilities exceed current assets by a wide margin, and the capital structure is negative, indicating insolvency on a balance sheet basis. Given the company was incorporated less than a year ago and is already in negative equity, there is a high risk that it cannot service additional debt or meet commercial payment obligations reliably at this stage.

2. Financial Strength:
   The balance sheet reveals extremely weak financial strength. Total current assets stand at only £1,057, while current liabilities are £24,400, resulting in a negative working capital position. Moreover, non-current creditors of £24,400 further aggravate the liability side. The negative shareholders' funds (-£23,823) confirm that the company’s liabilities exceed its assets and that equity holders have no residual value. The capital structure and liquidity position are inadequate for sustaining operations without immediate capital injection or profitability improvements.

3. Cash Flow Assessment:
   While detailed cash flow data is not provided, the balance sheet snapshot suggests constrained liquidity with minimal current assets insufficient to cover short-term liabilities. The company’s net current assets are positive by £1,057 per the document, but this appears inconsistent with the stated current liabilities of £24,400 and may be a reporting anomaly or classification issue. Regardless, the overall net liabilities and negative equity imply the business is under cash flow pressure and may rely on external funding or director loans to continue operating.

4. Monitoring Points:

• Track improvements in liquidity ratios, specifically current ratio and quick ratio, to assess short-term financial health.
• Monitor changes in net assets and shareholders’ funds to detect any equity strengthening or further erosion.
• Watch for timely filing of subsequent accounts and confirmation statements as governance indicators.
• Evaluate directors’ actions to improve working capital and reduce liabilities, including potential capital injections.
• Assess operational performance and revenue growth to determine if the business model is viable long term.