CHEPSTOW BARRIERS LIMITED

Executive Summary

Chepstow Barriers Limited demonstrates improving financial health with rising net assets and positive working capital after initial years of negative liquidity. The company’s cash position and equity base have strengthened, though modest scale and director reliance require cautious credit exposure. Overall, the business shows adequate capacity to service small credit facilities, warranting approval with ongoing monitoring of liquidity and related party financing.

CHEPSTOW BARRIERS LIMITED - Analysis Report

Company Number: 13113543

Analysis Date: 2025-07-20 12:59 UTC

1. Credit Opinion: APPROVE with caution. Chepstow Barriers Limited is a small, active private limited company operating in niche construction activities. The company shows improving financial metrics with positive net assets and working capital in the latest year. However, the company is relatively young (incorporated 2021) and has a modest financial base. The director’s ongoing financial support through advances suggests some reliance on related party funding, which merits monitoring. Overall, the company appears capable of servicing modest credit facilities but should be assessed prudently given its size and trading history.

2. Financial Strength: The balance sheet shows steady improvement from £4,918 net assets in 2021 to £12,337 in 2024. Fixed assets decreased from £13,117 to £4,372, likely due to depreciation. Current assets increased to £34,755 in 2024, driven by debtors and cash, while current liabilities reduced to £26,790, resulting in positive net current assets of £7,965 compared to negative working capital in prior years. Shareholders’ funds reflect retained earnings of £12,336, indicating accumulation of profits or capital injections. The small share capital (£1) is typical for small private companies but underscores limited equity buffer. Overall, the company’s financial position is improving with a strengthening equity base and better liquidity.

3. Cash Flow Assessment: Cash balances rose to £5,595 in 2024 from £1,336 in 2023, indicating improved liquidity. Debtors increased modestly, but remain manageable relative to current liabilities. The positive net current assets indicate adequate short-term resources to meet obligations, supporting operational continuity. Payroll costs are minimal, consistent with a micro-sized workforce (1 employee). The director’s advances and credits, with a balance of -£4,413, suggest ongoing informal financing, which helps liquidity but could pose risk if not formalized. The company’s cash flow appears stable but limited in scale, suitable for small credit lines or overdraft facilities.

4. Monitoring Points:

• Debtor collection trends and ageing profiles to ensure timely cash inflows.
• Continued profitability and retention of earnings to build equity.
• Reliance on director advances and potential need for formalizing related party loans.
• Changes in working capital, especially current liabilities, which impact liquidity.
• Business growth and order book development in the specialised construction niche.
• Compliance with filing deadlines remains up to date.