Company Number: SC676940

Analysis Date: 2025-07-29 20:21 UTC

1. Risk Rating: LOW to MEDIUM
   Loch Leven Gin Limited demonstrates a positive net asset position and improved working capital in its latest financial year, indicating solvency and an ability to meet short-term obligations. However, the company is micro-sized, with relatively modest fixed assets and some outstanding director loans, which introduces moderate risk considerations.

2. Key Concerns:

• Director Loans: The company owes £15,913 in unsecured, interest-free loans to directors with no fixed repayment terms. While common in small businesses, this reliance on director funding could pose a liquidity risk if the company faces cash flow challenges.
• No Employees: The average number of employees is reported as nil, which may reflect reliance on contractors or owners. This could impact operational sustainability and scalability.
• Provisions and Deferred Income: The presence of provisions (£4,094) and accruals/deferred income (£5,800) suggests outstanding liabilities or obligations that should be monitored for future cash flow impact.

3. Positive Indicators:

• Improved Net Current Assets: Net current assets increased substantially from £9,791 in 2023 to £27,083 in 2024, showing a stronger liquidity position.
• Consistent Net Assets Growth: Net assets rose from £27,603 to £29,633 between 2023 and 2024, indicating retained earnings or capital injection supporting financial stability.
• Timely Filings: Both accounts and confirmation statements are up to date with no overdue filings, suggesting good regulatory compliance and governance.
• Active Website and Market Presence: An active online presence and clear industry classification in wholesale of alcoholic beverages support operational transparency and market engagement.

4. Due Diligence Notes:

• Verify the terms and potential impact of director loans on cash flow, including any intentions for repayment or conversion to equity.
• Assess revenue streams and profitability trends beyond balance sheet data, as no turnover or P&L data are provided here.
• Investigate operational model given zero employees reported — clarify use of contractors, outsourcing, or owner involvement.
• Review provisions and deferred income details to understand contingent liabilities or future commitments.
• Confirm no hidden regulatory or compliance issues given the company’s relatively recent incorporation (2020) and sector-specific licensing requirements.