Company Number: 14669423

Analysis Date: 2025-07-29 14:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Cherry Picker Hire Ltd is a newly incorporated private limited company (incorporated February 2023) operating in the truck and heavy vehicle rental sector. The company filed its first set of accounts for the period ending 29 February 2024 showing a modest but positive net asset position and no overdue filings. However, given the company’s very early stage of operations, limited financial history, and small asset base (£2,525 net assets), credit exposure should be cautiously managed. Approval for credit facilities may be considered with limits aligned to the company’s size and early trading stage, subject to regular monitoring and receipt of updated financials.

2. Financial Strength:

• Net assets at £2,525 reflect a very small capital base, consistent with the company’s micro entity status.
• Current assets total £3,812, mainly cash (£2,072) and debtors (£1,740), against current liabilities of £1,287, resulting in positive working capital of £2,525.
• No fixed or intangible assets reported, indicating minimal capital investment to date.
• Share capital is nominal (£2), with retained earnings of £2,523, suggesting initial profitability or capital injections.
• Absence of long-term liabilities or borrowings reduces financial risk but also limits operational scale.

3. Cash Flow Assessment:

• Cash at bank of £2,072 provides some liquidity cushion for day-to-day operations.
• Debtors of £1,740 are relatively small, suggesting limited credit risk exposure but also limited revenue scale.
• Current liabilities are low (£1,287), mainly trade or other short-term payables.
• Positive net current assets of £2,525 indicate the company is currently liquid and able to meet short-term obligations.
• No indication of overdraft use or external financing at this stage.

4. Monitoring Points:

• Track revenue growth and profitability in subsequent accounts to assess business scalability and sustainability.
• Monitor cash flow trends closely, especially debtor collection periods and creditor payment terms.
• Review any future capital expenditure or borrowing plans that may impact liquidity or solvency.
• Keep watch on director changes and related party transactions given the 100% ownership/control by the two directors.
• Confirm timely filing of future accounts and confirmation statements to maintain compliance.