LOKI WINES ONLINE LIMITED

Executive Summary

Loki Wines Online Limited has demonstrated a positive shift in financial position over the last year, moving to a sound working capital and equity base from a previously weak position. Liquidity has improved substantially, supported by better cash and debtor management. While the company is still small and early in its trading lifecycle, conditional credit approval is warranted provided continued financial discipline and performance monitoring.

LOKI WINES ONLINE LIMITED - Analysis Report

Company Number: 13279030

Analysis Date: 2025-07-29 19:01 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Loki Wines Online Limited shows signs of recent financial improvement, moving from negative working capital and negligible net assets in 2023 to positive net current assets (£14,089) and shareholders’ funds (£15,538) as of June 2024. However, the company remains small with limited trading history and low asset base, which suggests some risk. Approval is recommended subject to continued monitoring of cash flow and debtor management, and confirmation of stable or growing revenues.

2. Financial Strength:
   The balance sheet reflects a micro-entity scale operation with minimal fixed assets (£1,449) and modest current assets (£30,379). The significant turnaround from net current liabilities in the previous period to positive working capital is encouraging. Shareholders’ funds have increased from £100 to £15,538, indicating retention of earnings or capital injection supporting solvency. No long-term liabilities are reported, limiting leverage risk.

3. Cash Flow Assessment:
   Cash at bank improved substantially from £4,410 in 2023 to £21,191 in 2024, strengthening liquidity. Debtors reduced from £20,549 to £9,188, indicating better collection or lower sales on credit. Current liabilities decreased notably from £26,754 to £16,290, easing short-term obligations. Net current assets are comfortably positive, suggesting sufficient working capital to meet immediate obligations. However, absence of detailed cash flow statements limits deeper analysis.

4. Monitoring Points:

• Maintain or increase cash balances and monitor debtor days closely to avoid liquidity strain.
• Track turnover and profitability trends as income statement details are unavailable.
• Watch for any emerging short-term liabilities that could pressure working capital.
• Review management’s ability to sustain growth and control expenses in a competitive online retail sector.
• Confirm no director or related party transactions that might present conflicts or risks.