Company Number: 13053558

Analysis Date: 2025-07-29 18:57 UTC

1. Credit Opinion: DECLINE
   Chariton Limited's latest financials show significant deterioration in its balance sheet. The company reported net liabilities of £951 at the end of 2023, a reversal from positive net assets of £400 in 2022. The sharp drop in current assets from £1,925 to £170 combined with decreased fixed assets and increased accruals indicates worsening liquidity and operational strain. The company is unable to maintain positive working capital, raising concerns about its ability to meet short-term obligations and service any debt. Given the negative net asset position and lack of demonstrated financial resilience, extending credit facilities is not recommended at this time.

2. Financial Strength:
   The company’s financial health has declined markedly over the last year. Total assets less current liabilities shifted from +£850 in 2022 to -£101 in 2023. Net current assets moved from a positive £681 to a negative £960, signaling insufficient short-term asset coverage for liabilities. The accruals and deferred income doubled from £450 to £850, possibly reflecting delayed payments or deferrals. Shareholders’ funds, equal to net assets, are negative, indicating erosion of equity capital. The micro-entity size and minimal share capital (£1) provide little financial buffer.

3. Cash Flow Assessment:
   Liquidity is severely constrained with current assets plummeting to £170 against current liabilities of £1,130. This mismatch suggests a working capital deficit that could impair day-to-day operations and creditor payments. The absence of significant cash or equivalents raises concerns about the company’s ability to generate sufficient cash flow from operations or external sources to meet immediate obligations. The average employee count remains just one, implying limited operational scale and possibly limited revenue generation.

4. Monitoring Points:

• Monitor subsequent trading results and cash flow statements to assess any recovery in liquidity.
• Watch for timely filing of future accounts and confirmation statements to ensure ongoing compliance.
• Track any changes in shareholder funding or director loans that might shore up the balance sheet.
• Observe director conduct and any external credit or payment performance alerts.
• Review any business developments or contracts that could improve revenue streams or working capital.