Company Number: 13644796

Analysis Date: 2025-07-20 14:28 UTC

1. Credit Opinion: CONDITIONAL approval is recommended. Calvert Bateson Limited shows positive developments with net assets improving from a deficit of £1,497 in 2023 to a marginal positive £96 in 2024, primarily due to revaluation or acquisition of investment property assets. However, the company has persistent negative net current assets (working capital deficit) of £36,096, indicating liquidity pressure. The secured long-term borrowings of £93,695 are significant relative to net assets. The company is very small, with only one employee (a director), and limited operating history since incorporation in 2021. Close monitoring is advised, and credit exposure should be limited or secured given the working capital shortfall and reliance on property asset valuations.

2. Financial Strength: The balance sheet shows investment property valued at £131,112 as the main fixed asset. Current liabilities exceed current assets, resulting in a working capital deficit of £36,096. Long-term secured borrowings are £93,695, which is a high gearing relative to the net asset base of £96. Share capital is minimal (£10). The company has improved its net assets from negative to slightly positive, reflecting asset appreciation or debt restructuring, but equity buffer remains negligible. This weak equity and high leverage imply limited financial strength to absorb shocks.

3. Cash Flow Assessment: Cash balances increased to £8,924 at the 2024 year-end from £696 previously, indicating some improvement in liquidity. However, the company still faces a current liabilities burden of £45,020 due within one year, which is five times the cash on hand. The negative working capital suggests potential difficulties meeting short-term obligations without additional financing or asset disposals. The absence of detailed profit and loss data limits full cash flow evaluation, but the working capital deficit is a key concern for operational liquidity.

4. Monitoring Points:

• Working capital and current ratio trends: ongoing negative net current assets require close tracking.
• Loan servicing capability: monitor interest and principal repayments on the £93,695 secured borrowings.
• Investment property valuations: these are critical to the company’s net asset position; any declines could impair equity.
• Cash flow generation from operations: as the company grows, assess if operational cash inflows improve liquidity.
• Director actions and ownership structure: changes in control or additional capital injections by the two directors who hold equal share and voting rights.