Company Number: 13197681

Analysis Date: 2025-07-19 12:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   One Eliquids Ltd demonstrates modest net current assets and positive shareholders' funds at £198 as of 30 November 2024, comparable to a strong £12,750 in the prior year. However, there is a sharp decline in liquidity and working capital from 2023 to 2024, with current assets dropping from £55,994 to £857 and current liabilities reducing from £43,244 to £659. The company shows signs of financial stress but not insolvency, with a very small cash buffer (£349) and low debt. Given the recent downturn, approval is conditional on monitoring cash flow closely and obtaining updated management forecasts. The company operates in retail internet sales and wholesale, which are competitive sectors requiring efficient cash management.

2. Financial Strength
   The balance sheet is currently weak in absolute terms with total assets less current liabilities at only £198, down significantly from £12,750 the previous year. Shareholders’ funds have reduced sharply but remain positive, indicating no immediate solvency concerns. The company holds minimal fixed assets (not explicitly stated but inferred zero stock in 2024 vs £19,902 in 2023). The drastic reduction in debtors (from £32,588 to £508) and stock (from £19,902 to nil) suggests either a substantial decrease in business volume or aggressive working capital management. The absence of long-term liabilities is positive, but the minimal capital base (share capital £1) limits financial resilience.

3. Cash Flow Assessment
   Cash at bank has decreased significantly to £349, which is critically low for operational flexibility. Net current assets remain positive but marginal (£198), indicating very limited working capital. The reduction in creditors from £43,244 to £659 may reflect a decrease in trade activity or payment of debts, but the company must maintain sufficient liquidity to cover short-term obligations. The lack of employees (average nil) suggests low overhead but may also indicate a limited operational scale. Cash flow appears tight, and the company’s ability to meet ongoing commitments depends on maintaining or growing turnover and effective debtor collection.

4. Monitoring Points

• Track monthly cash flow and debtor collections closely to prevent liquidity shortfalls.
• Monitor turnover trends to confirm if the decline in current assets is temporary or structural.
• Review management plans for stock acquisition and sales to understand inventory strategy.
• Assess any off-balance sheet liabilities or contingent risks not disclosed in accounts.
• Watch for updated filings and confirmation statements to ensure compliance and transparency.
• Monitor director activities and related party transactions given the control by JR Chapman and the history of amounts owed to related parties.