CF LIVERY LIMITED
Company number 08604891 · 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: CF LIVERY LIMITED
1. Credit Opinion: CONDITIONAL
CF Livery Limited is a micro-entity equestrian business with limited financial depth and minimal disclosure. While the company demonstrates long-term stability through consistent positive net assets since 2015, the scale of operations is extremely small (net assets of only £12,711) and insufficient to support meaningful unsecured credit facilities.
Conditions for approval: - Personal guarantees from both directors (Michael and Lynda Barber) required for any facility exceeding £5,000 - Facility limits should be proportionate to the business's modest asset base - Enhanced monitoring of annual accounts for deterioration in net asset position
2. Financial Strength
Balance Sheet Position (as at 31 July 2025):
| Metric | 2025 | 2024 | Movement |
|---|---|---|---|
| Fixed Assets | £2,081 | £2,448 | (£367) |
| Current Assets | £18,272 | £16,567 | +£1,705 |
| Current Liabilities | (£7,642) | (£7,957) | +£315 |
| Net Current Assets | £10,630 | £8,610 | +£2,020 |
| Net Assets | £12,711 | £11,058 | +£1,653 |
Key Observations:
- Minimal capital base: Share capital of only £100. The business is almost entirely funded through retained profits, which have accumulated slowly over 10+ years.
- Positive trajectory: Net assets have grown from £1,849 (2015) to £12,711 (2025), demonstrating gradual wealth accumulation. However, this represents only ~£1,000 per annum average growth.
- Current ratio: 18,272 / 7,642 = 2.39x — adequate for covering short-term obligations.
- No leverage: The business appears to carry no long-term debt, which is positive but also indicates no track record of debt servicing.
- Asset quality concerns: Fixed assets of only £2,081 suggest minimal property, equipment, or infrastructure. Current assets dominate the balance sheet (90% of total assets), likely comprising debtors and cash rather than tangible security.
Historical Volatility: The 2022 spike in both total assets (£26,505) and liabilities (£15,547) warrants attention. This may indicate a temporary influx of funds (possibly COVID-related support or a large contract) that has since normalized. The subsequent reduction in both suggests the business reverted to its typical operating scale.
3. Cash Flow Assessment
Severe Data Limitations: As a micro-entity, CF Livery files abbreviated accounts with no profit and loss statement, no cash flow statement, and minimal notes. This significantly constrains our ability to assess: - Operating profitability and margins - Cash generation from trading activities - Working capital dynamics (debtor/creditor days) - Capital expenditure requirements
Inferred Cash Flow Indicators:
- Retained profit: The £1,653 increase in net assets (2024: £11,058 → 2025: £12,711) represents the annual retained profit after any dividends. This is a modest figure and suggests limited free cash flow generation.
- Working capital improvement: Net current assets increased by £2,020, driven by growth in current assets outpacing liability growth. This is positive for liquidity.
- Zero employees: The business reports 0 employees in both 2024 and 2025, suggesting this is effectively a husband-and-wife owner-operated venture with minimal overhead.
- Cash position unknown: No cash figure is disclosed for recent years (last reported at £1,239 in 2016 and £551 in 2015). This is a significant gap in our assessment.
Liquidity Risk: While the current ratio appears healthy, without understanding the composition of current assets (particularly the proportion of debtors vs. cash), it is difficult to assess true liquidity. If a significant portion of the £18,272 in current assets is tied up in debtors, actual cash availability may be constrained.
4. Monitoring Points
| Metric | Current Position | Watch Threshold | Rationale |
|---|---|---|---|
| Net Assets | £12,711 | Below £10,000 | Indicates erosion of the already thin equity buffer |
| Current Ratio | 2.39x | Below 1.5x | Signals potential working capital stress |
| Filing Timeliness | Current | Any overdue filing | Suggests financial difficulty or management issues |
| Current Liabilities | £7,642 | Above £10,000 | Could indicate creditor pressure or new borrowing |
| Year-over-Year Net Asset Movement | +£1,653 | Negative movement | Loss-making periods would rapidly deplete limited reserves |
Additional Monitoring Considerations:
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Director changes: Any change in the directorship (currently Michael and Lynda Barber) would be significant given the owner-operated nature of the business.
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Industry risk: SIC code 93199 (Other sports activities) encompasses equestrian/livery services, which are discretionary spending categories vulnerable to economic downturns. Consumer spending on horse care and livery typically contracts during recessions.
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Related party exposures: The accounts provide no visibility on director loans or related party balances. Given the minimal share capital (£100), there may be director loans that could be withdrawn.
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Seasonal trading: Livery businesses often experience seasonal cash flow variations. Understanding the company's seasonal patterns would be valuable for working capital facility structuring.
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Property dependency: The registered address at Crossley Farm suggests the business operates from a rural property. Clarification on whether this is owned or leased, and by whom (potentially the directors personally), would be material to understanding fixed cost obligations.