C H BROADCAST LTD

Executive Summary

C H Broadcast Ltd is a small, micro-entity with stable but modest financial metrics and positive working capital. The company’s declining net assets warrant cautious credit extension with conditional approval, subject to ongoing monitoring of financial performance and liquidity. The limited scale and single-director management structure suggest a need for close oversight of operational risks.

C H BROADCAST LTD - Analysis Report

Company Number: 12745754

Analysis Date: 2025-07-29 15:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   C H Broadcast Ltd is a micro private limited company operating in the niche sector of electronic and optical equipment repair. The company shows positive net current assets and net asset values, indicating a modest but stable financial base. However, there is a decline in net assets from £6,173 in 2023 to £4,556 in 2024, which requires monitoring. The company is small, with only one employee (the director), limiting operational scale and diversification of management expertise. Given these factors, credit approval is recommended on a conditional basis, subject to periodic review of updated financial results and cash flow.

2. Financial Strength:
   The balance sheet shows total net assets of £4,556 as of 31 July 2024, down from £6,173 in the prior year. Current assets stand at £11,479 with current liabilities at £6,923, resulting in positive net working capital of £4,556. The share capital is minimal at £100, reflecting a small equity base. The decline in net assets suggests either increased liabilities or reduced retained earnings, but overall the company maintains a positive equity position without signs of insolvency.

3. Cash Flow Assessment:
   The company’s net current assets indicate sufficient liquidity to meet short-term obligations. However, the reduction in current assets from £13,493 to £11,479 alongside a slight decrease in current liabilities suggests some tightening of working capital. With only one employee and low fixed assets (as implied by the micro-entity status and balance sheet figures), cash flows are likely tightly correlated to operational activity and customer payments. There is no detailed profit and loss data, so cash flow must be inferred cautiously. Close attention should be paid to receivables and payables cycles going forward.

4. Monitoring Points:

• Continued trend in net assets and net current assets to ensure no further erosion of financial strength
• Timely filing of accounts and confirmation statements to maintain compliance and transparency
• Cash flow management, especially collection of receivables and control of payables
• Any changes in business activity or scale that might impact liquidity or credit risk
• Director’s management and operational decisions, given the sole director structure