CHACHO COURIER LIMITED

Executive Summary

CHACHO COURIER LIMITED is a micro-entity in the freight transport sector with improving net assets but ongoing liquidity concerns due to negative net current assets. The company is compliant with filing requirements but remains operationally small with limited financial buffers. Further due diligence on cash flow, liabilities, and business model sustainability is recommended to fully assess risk exposure.

CHACHO COURIER LIMITED - Analysis Report

Company Number: 14357974

Analysis Date: 2025-07-29 17:25 UTC

1. Risk Rating: MEDIUM
   The company shows a small but improving net asset position, which is positive. However, persistent negative net current assets indicate liquidity challenges that could impair short-term solvency. The company is very young, with limited financial history, adding uncertainty to operational stability.

2. Key Concerns:

• Negative net current assets of £31,509 at 2024 year-end, although improved from prior years, suggest ongoing liquidity risk and potential cash flow strain.
• The company has a very small asset base (£48,976 fixed assets) and limited financial buffer. Any adverse event could impact its ability to meet liabilities.
• Only three employees and micro-entity status imply limited scale and resources, which may affect operational sustainability and growth prospects.

3. Positive Indicators:

• Net assets have increased significantly from £2,768 in 2023 to £17,527 in 2024, showing a strengthening equity position.
• Timely filing of accounts and confirmation statements with no overdue submissions indicates sound regulatory compliance and governance.
• Shareholder structure includes three individuals with balanced ownership and voting rights, potentially facilitating aligned decision-making.

4. Due Diligence Notes:

• Review detailed cash flow statements (if available) to assess liquidity management and working capital trends over the reporting periods.
• Investigate the nature and maturity profile of current liabilities to understand immediate payment obligations and refinancing risk.
• Confirm the company’s revenue streams and customer concentration to evaluate operational stability and growth potential.
• Assess any contingent liabilities or off-balance sheet commitments not disclosed in footnotes.
• Verify background and track record of directors and significant controllers for governance quality and experience.