CHATTERTONS GROUP LIMITED

Executive Summary

Chattertons Group Limited is a financially stable private limited company with strong liquidity and net asset growth. The company complies with regulatory requirements and has a clean audit report supporting its going concern status. Investors should monitor cash flow sustainability and market risks inherent in the professional services sector.

CHATTERTONS GROUP LIMITED - Analysis Report

Company Number: 13188560

Analysis Date: 2025-07-29 19:47 UTC

1. Risk Rating: LOW
   Chattertons Group Limited demonstrates strong financial health with substantial net assets (£8.47m), robust net current assets (£3.56m), and significant cash reserves (£2.25m) as of April 2024. The company is compliant with filing deadlines, has a clean audit opinion, and no indicators of financial distress or regulatory non-compliance were identified.

2. Key Concerns:

• Modest share capital (£100) relative to total net assets could imply reliance on retained earnings and reserves rather than equity injections.
• Dividend payments totaling £501,000 in the year suggest cash outflows that should be monitored against operational cash flow sustainability.
• The company operates in a competitive professional services market where economic downturns could impact demand, as acknowledged in the strategic report.

3. Positive Indicators:

• Strong liquidity evidenced by cash holdings exceeding £2.25m and positive net current assets.
• Growing net assets from £6.93m (2022) to £8.47m (2024) indicating retained profitability and capital accumulation.
• Auditor’s report confirms the appropriateness of the going concern assumption and compliance with UK GAAP and Companies Act requirements.
• Directors and ownership structure are stable with no disqualification records and significant control held by a corporate holding entity and two experienced directors.
• The strategic report outlines active risk management processes including governance framework and cyber security measures.

4. Due Diligence Notes:

• Obtain detailed cash flow statements and analysis of operating cash flows versus dividend payments to assess sustainability.
• Review the nature and valuation of fixed assets (£4.9m) for impairment risk or potential liquidity constraints.
• Investigate potential contingent liabilities or off-balance sheet risks not disclosed in summary data.
• Confirm the extent of reliance on major clients or sectors to understand concentration risk.
• Assess competitive landscape and market trends in legal and wealth management services for future revenue stability.