LIBERTINE SPIRITS LTD
Company number 07045799 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
CREDIT ANALYSIS: LIBERTINE SPIRITS LTD
1. Credit Opinion: DECLINE
This application should be declined. Libertine Spirits Ltd is deeply and chronically insolvent, with net liabilities exceeding £351,000 and no visible trading activity or revenue generation capability. The company has been in a technically insolvent state for its entire visible 10-year history, surviving only because its principal creditor (likely the director/related party) has not enforced repayment. There is no capacity to service additional debt obligations.
The marginal improvement in net assets year-on-year (£12,237) is immaterial relative to the scale of the deficit and does not alter the fundamental credit risk.
2. Financial Strength: CRITICAL
Balance Sheet Summary (FY 2024):
| Metric | 2024 | 2023 | Movement |
|---|---|---|---|
| Total Assets | £8,421 | £5,183 | +£3,238 |
| Total Liabilities | £336,035 | £350,035 | -£14,000 |
| Net Assets | (£351,295) | (£363,532) | +£12,237 |
| Shareholders' Funds | (£501,495) | (£513,732) | +£12,237 |
Key Concerns:
- Deep Insolvency: Net liabilities of £351,295 represent a severe capital deficiency. Shareholders' funds show accumulated losses of £501,495 against paid-in capital of just £150,200 (share capital £230 + share premium £149,970).
- No Tangible Asset Base: Plant and machinery is fully depreciated (NBV = £0). The entire asset base comprises £8,304 cash and £117 in other debtors.
- Chronic Condition: This is not a temporary downturn. The company has carried net liabilities exceeding £350,000 consistently since at least 2015.
- Zero Employees: The average employee count is NIL for both 2024 and 2023. This is effectively a non-trading entity.
3. Cash Flow Assessment: INADEQUATE
Liquidity Position:
| Metric | 2024 | 2023 |
|---|---|---|
| Cash | £8,304 | £5,181 |
| Current Assets | £8,421 | £5,183 |
| Current Liabilities | £23,681 | £18,680 |
| Current Ratio | 0.36x | 0.28x |
Working Capital Deficit: Net current liabilities of £15,260 (2024) and £13,497 (2023). The company cannot cover short-term obligations from current assets.
Creditor Composition:
| Creditor Type | 2024 | 2023 |
|---|---|---|
| Trade Creditors | £5,026 | £25 |
| Other Creditors (current) | £18,655 | £18,655 |
| Other Creditors (non-current) | £336,035 | £350,035 |
The non-current "other creditors" of £336,035 dominates the balance sheet. This is almost certainly a related-party loan (director/parent company Libertine Company Limited). The reduction of £14,000 year-on-year suggests minimal repayments are being made, but this creditor is unlikely to be called in given the controlling party relationship.
No Revenue Visibility: The income statement has not been filed (permitted under Section 444, Companies Act 2006 for small companies). However, the absence of trade debtors, minimal trade creditors, and zero employees strongly suggests negligible or no trading revenue.
4. Monitoring Points
If any credit exposure is already in place, the following should be monitored:
| Metric | Current | Threshold for Concern |
|---|---|---|
| Net Assets | (£351,295) | Any further deterioration |
| Current Ratio | 0.36x | Already critical |
| Cash Position | £8,304 | Below £5,000 |
| Filing Compliance | Current | Any overdue filings |
| Director Changes | Stable | Resignation of S G Randall |
| Creditor Pressure | Low (related party) | Any legal actions/CCJs |
Additional Risk Indicators: - Any attempt to draw down further on the related-party loan - Changes in the PSC structure (currently Mr Randall 50-75%, Libertine Company Limited 25-50%) - Failure to file accounts on time (next due: 30 September 2027) - Any shift from "other creditors" to formal third-party debt
Structural Observations
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Related Party Dominance: The director S G Randall is the controlling party, and Libertine Company Limited holds 25-50% of shares. The entire creditor base appears to be related party, meaning there is no arm's-length creditor discipline on the business.
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Dormant-like Operations: Despite being incorporated since 2009, the company shows no signs of active wholesale trading in alcoholic beverages. The SIC code (46342) appears disconnected from actual activity.
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Going Concern Risk: While no going concern note is visible (small company exemption), the company can only continue as a going concern if the related-party creditor continues to support it indefinitely and does not demand repayment.