RIVERBANK DISTILLERY AND BOTTLING SOLUTIONS LTD

Executive Summary

Riverbank Distillery and Bottling Solutions Ltd shows improving working capital and operational activity but exhibits dependency on related party funding and a shrinking equity base. Conditional approval is advised with close monitoring of liquidity, inventory management, and reduction of intercompany liabilities to ensure sustainable creditworthiness.

RIVERBANK DISTILLERY AND BOTTLING SOLUTIONS LTD - Analysis Report

Company Number: 13157662

Analysis Date: 2025-07-29 20:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Riverbank Distillery and Bottling Solutions Ltd demonstrates operational activity with growth in net current assets and total assets less current liabilities for the year ending March 2023. However, the company carries a significant long-term creditor balance (£129,673 owed to group undertakings) which could indicate reliance on related party funding. The reduction in net assets from £49,468 (2022) to £32,178 (2023) suggests some erosion in equity, although this is not alarming for a young company. Approval is recommended subject to monitoring the company’s ability to reduce related party debt and improve cash generation.

2. Financial Strength:

• Fixed assets are primarily plant and machinery (£79,646 net book value), consistent with its industry (distilling).
• Net current assets improved substantially from a negative £38,830 in 2022 to a positive £77,030 in 2023, driven by increases in inventory (£64,562) and reduction in current liabilities (£16,900).
• The company’s equity (£32,178) remains positive but has declined year-on-year, reflecting losses or distributions.
• Long-term liabilities are significant and entirely owed to group entities, indicating external financing is minimal but intra-group financing is material.

3. Cash Flow Assessment:

• Cash on hand decreased from £9,334 to £7,328, a small reduction but indicates limited liquidity buffer.
• Debtors have reduced from £28,746 to £22,040, which is positive for cash collection.
• Inventories have increased substantially, tying up working capital and potentially impacting liquidity if stock turnover is not swift.
• Low current liabilities and positive net current assets suggest good short-term liquidity.
• Reliance on loans from directors (£10,461) and accrued payments may require attention for cash flow stability.

4. Monitoring Points:

• Track reduction in long-term intercompany creditor balance to assess reliance on group funding.
• Monitor inventory turnover to ensure working capital is not overly tied up in stock.
• Watch cash balances and debtor days to ensure liquidity remains adequate.
• Observe profit and loss trends in future filings to verify if equity erosion continues or reverses.
• Review director loans and related party transactions for potential cash flow risks.