Company Number: 13558751

Analysis Date: 2025-07-20 18:35 UTC

1. Risk Rating: HIGH
   JM Beverages Ltd exhibits significant solvency and liquidity risks, evidenced by persistent negative net current assets and shareholders' funds, deteriorating further in the latest financial year.

2. Key Concerns:

• Negative Net Current Assets: The company’s net current assets have been negative for multiple years, worsening to -£24,707 as of August 2024 from -£8,934 in prior years, indicating a strained ability to meet short-term liabilities.
• Negative Shareholders’ Funds: Shareholders’ equity turned negative at -£13,254 in 2024, suggesting accumulated losses eroded the company’s net worth and potentially impairing financial stability.
• Zero Cash Balance: The absence of cash reserves at the latest year end raises immediate liquidity concerns, increasing the risk of operational disruption due to inability to cover immediate expenses.

3. Positive Indicators:

• Tangible Fixed Assets Growth: The company increased its fixed assets to £11,553 in 2024, which could support future operations or collateral for financing.
• No Overdue Filings: The company is up to date with statutory filings (accounts and confirmation statements), mitigating regulatory risk.
• Active Website and Trade: Presence of an active website and ongoing registration status indicate the company is operational.

4. Due Diligence Notes:

• Review Cash Flow and Working Capital Management: Investigate the company’s cash flow statements (not provided) to assess how short-term liabilities are being managed without cash reserves.
• Examine Profit and Loss Trends: The absence of a delivered income statement limits assessment of profitability; obtaining this data is critical to understand loss drivers and future viability.
• Director and Related Party Transactions: Analyze director's current account balances and transactions, notably the £1,584 owed to the director, to evaluate related party risk and potential funding support.
• Assess Going Concern Disclosures: Verify any management commentary on going concern, considering the negative equity and liquidity position.
• Check for Undisclosed Contingent Liabilities: Given financial distress indicators, confirm if there are any contingent liabilities or legal proceedings that could impact solvency.
• Evaluate Market and Industry Conditions: Given the wholesale of coffee, tea, cocoa and spices SIC code, market conditions and competitive positioning should be assessed to gauge operational sustainability.