AMBER BEVERAGE UK LIMITED
Company number 03705002 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: Amber Beverage UK Limited
1. Credit Opinion: DECLINE
This is a straightforward decline with no ambiguity. The company is currently in Administration — a formal insolvency process under the Insolvency Act 1986. The registered office has been transferred to BDO LLP (an insolvency practitioner) at their Liverpool address. No new credit facilities or commercial agreements should be extended to this entity under any circumstances. An administrator, not the directors, now controls the company's affairs, and any dealings would need to be conducted through the appointed administrator.
Even setting aside the administration status, the underlying financials independently warrant a decline, as detailed below.
2. Financial Strength
The balance sheet is deeply impaired and has been deteriorating for several years:
| Metric | 2018 (Dec) | 2019 | 2020 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Assets | £6.81M | £5.15M | £0.81M | -£0.97M | -£3.11M |
| Shareholders' Funds | £6.81M | £5.15M | £14.48M* | -£15.45M | -£17.60M |
| Total Liabilities | £12.81M | £16.85M | £13.91M | £20.22M | £19.11M |
The 2020 shareholders' funds figure appears to reflect a capital restructuring or reclassification event, but the trajectory is unmistakably downward.
Key concerns: - Negative equity: Shareholders' funds have been negative since at least 2023, standing at -£17.6M at year-end 2024. The company is technically insolvent on a balance sheet basis. - Accumulated losses: The P&L reserve is deeply negative, indicating sustained trading losses over multiple years with no evidence of corrective action. - Liability coverage: Total liabilities of £19.1M against total assets of £22.6M leave virtually no buffer. With net assets at -£3.1M, creditors are exposed. - Share capital of only £5: The company has negligible paid-up share capital, meaning there is no meaningful equity cushion for creditors.
The company is part of the Amber Beverage Group (owned via Cellar Trends Holdings Limited, which holds 75%+ of shares, with ultimate PSC being name shown to subscribers). While group affiliation can provide support, there is no evidence of a formal guarantee or demonstrated parent company financial backing sufficient to offset the UK entity's insolvency.
3. Cash Flow Assessment
| Metric | 2023 | 2024 | Change |
|---|---|---|---|
| Turnover | £53.08M | £39.51M | -25.5% |
| Loss Before Tax | -£1.96M | -£2.14M | Worsening |
| Cash on Hand | £1.17M | £1.45M | +24% |
Revenue decline is severe: A 25.5% drop in turnover year-on-year is alarming for any business, but particularly for a wholesale distribution operation where fixed cost bases (warehousing, logistics, staffing) are difficult to flex proportionately. This explains the continued trading losses.
Cash position is critically thin: £1.45M cash against £19.1M in liabilities and a £39.5M turnover operation means the company has approximately 13 days of operating cash based on turnover. This is dangerously low and leaves no room for any working capital shock.
Working capital pressure: As a wholesale distributor of alcoholic beverages, this company relies heavily on stock and debtor management. With declining turnover, there is a high risk of inventory write-downs (obsolete or slow-moving stock) and potential debtor defaults as customers react to the company's deteriorating financial position.
No evidence of debt service capacity: The company is loss-making, has negative equity, and is in administration. There is no capacity to service additional debt obligations.
4. Monitoring Points
Given the administration status, traditional monitoring is moot — the administrator controls the process. However, for completeness and for monitoring any connected entities:
- Administration outcome: Track whether the administrator seeks a pre-pack sale, going-concern sale, or moves toward liquidation. This affects recovery prospects for existing creditors.
- Connected party exposure: Cellar Trends Holdings Limited and the broader Amber Beverage Group should be reviewed if any credit exposure exists to related entities.
- Director conduct: The current directors (Pavel Verbludenko, Normunds Stanevics, name shown to subscribers) should be monitored for any subsequent directorship appointments. No disqualifications are currently recorded, but the administration process may generate findings.
- Creditor recovery: Existing secured and unsecured creditors should be tracked through the administration process for recovery rates.
- Brand portfolio: The company distributes spirits brands (previously traded as Cellar Trends). Any value in distribution agreements or brand rights may be relevant to recovery scenarios.