WHISKY BATH LTD

Executive Summary

WHISKY BATH LTD is financially distressed, with persistent negative net assets and critical liquidity shortages. The company’s inability to cover current liabilities from cash or assets indicates high credit risk. Without significant improvement in cash flow or capital structure, extending credit is not advisable at this time.

WHISKY BATH LTD - Analysis Report

Company Number: 13543873

Analysis Date: 2025-07-29 18:00 UTC

1. Credit Opinion: DECLINE
   WHISKY BATH LTD exhibits a concerning financial position characterized by persistent and substantial net liabilities, increasing from approximately -£6,916 in 2021 to -£8,563 in 2024. The company’s current liabilities significantly exceed its current assets, indicating a severe working capital deficiency and inability to meet short-term obligations from available liquid resources. The absence of fixed assets and minimal cash balance (£81 in 2024) further limit collateral and liquidity buffers. Given these factors, the company lacks the financial resilience and capacity to reliably service additional debt or credit facilities without significant operational turnaround or capital injection.

2. Financial Strength:
   The balance sheet shows negative net assets and shareholders’ funds, with equity deteriorating over the last three years. The company holds no tangible fixed assets and relies solely on minimal cash resources to cover current liabilities nearing £8,600. The capital structure is weak, with no indication of external equity or retained earnings to support financial stability. This highlights a fragile financial foundation, exposing creditors to heightened default risk.

3. Cash Flow Assessment:
   Cash at bank has declined sharply from £660 in 2023 to £81 in 2024, while current liabilities remain high and relatively stable. Net current assets are significantly negative, indicating strained liquidity and insufficient working capital to cover short-term debts. The lack of employees and minimal operational scale suggest limited cash inflows. Without evidence of improving cash flow or external funding, the company’s ability to generate sufficient liquidity to meet creditor demands is doubtful.

4. Monitoring Points:

• Cash balance and liquidity trends in forthcoming periods.
• Changes in current liabilities and any restructuring efforts.
• Turnover and profit generation if available in future filings.
• Any capital injections or equity financing to improve net asset position.
• Director’s strategic plans and management actions to restore financial health.