CHARGEPOINT SOLUTIONS LTD

Executive Summary

Chargepoint Solutions Ltd has shown improving net asset strength through increased fixed assets and equity, but suffers from ongoing negative working capital, raising liquidity concerns. Conditional credit approval is advised, contingent on improved cash flow management and close monitoring of short-term liabilities. The company’s small size and single director ownership add risk concentration factors that should be considered in credit decisions.

CHARGEPOINT SOLUTIONS LTD - Analysis Report

Company Number: 13129736

Analysis Date: 2025-07-20 12:31 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Chargepoint Solutions Ltd demonstrates improving net asset position and fixed asset growth, which is positive. However, persistent negative net current assets indicate short-term liquidity strain. The company is a micro-entity with limited operating history and a single director/owner, which increases risk concentration. Approval is recommended with conditions including close monitoring of cash flow and working capital improvements, and possibly requiring personal guarantees or secured facilities.

2. Financial Strength:
   The balance sheet shows a steady improvement in net assets from a deficit of £2,525 in 2021 to a positive £12,441 in 2024, driven mainly by increased fixed assets (£15,192 in 2024 vs. £4,016 in 2023). However, current liabilities exceed current assets by £2,151 in 2024, highlighting net current liabilities and a working capital deficiency. The company's equity is entirely shareholder funds without external debt, which is a strength but also means limited financial leverage.

3. Cash Flow Assessment:
   The company’s current assets (largely cash and receivables) are insufficient to cover current liabilities, indicating potential short-term cash flow constraints. The decline in current assets from £9,645 in 2023 to £463 in 2024 is notable and may signal challenges in working capital management or inventory/debtor collection. The negative net current assets position suggests reliance on either owner funding or supplier credit to meet immediate obligations.

4. Monitoring Points:

• Liquidity ratios and net current assets trend to assess short-term financial stability.
• Cash conversion cycle and debtor/creditor aging to monitor working capital efficiency.
• Fixed asset utilization and return on investment, given increased capital expenditure.
• Any new external financing or changes in ownership/control that impact financial risk.
• Operational performance metrics to verify sustainable revenue generation supporting asset base.