CHERRYWOOD DEVELOPMENTS LTD

Executive Summary

Cherrywood Developments Ltd is currently a dormant micro-entity with no trading activity or income, limiting assessment of creditworthiness. The company’s balance sheet shows positive net current assets but no operational cash flow or financial performance history, making it unsuitable for credit approval at this time. Future monitoring should focus on commencement of trading and cash flow generation before reconsidering credit facilities.

CHERRYWOOD DEVELOPMENTS LTD - Analysis Report

Company Number: 14282948

Analysis Date: 2025-07-29 19:49 UTC

1. Credit Opinion: DECLINE
   Cherrywood Developments Ltd is a dormant company with no trading activity or income reported for the financial years ending 2023 and 2024. The absence of revenue and operational history prevents assessment of its ability to service debt or generate cash flow. Its current financial position shows net current assets of £27,233 as of August 2024, but this is mainly a working capital figure from cash or receivables without underlying trading profits. Given the lack of trading, no profit and loss data, and minimal equity (shareholders funds increased from £100 to £27,233), the company does not demonstrate financial strength or repayment capacity at this time. The credit risk is elevated due to insufficient evidence of business activity or cash generation, so credit facilities are not recommended.

2. Financial Strength:
   The balance sheet indicates zero fixed assets in 2024 (down from £123,894 in 2023), suggesting asset disposals or write-offs. Current assets increased substantially to £171,091, while current liabilities are £143,858, resulting in positive net current assets of £27,233. Shareholders funds improved from £100 to £27,233, reflecting some capital injection or asset revaluation. However, the company remains micro-entity sized with no operational earnings or retained profits. The balance sheet is modest but stable, showing no long-term liabilities or debt financing. The lack of trading undermines financial resilience despite a positive working capital position.

3. Cash Flow Assessment:
   No income or expenditure has been reported, and no formal income statement was prepared due to dormancy. This means there is no operating cash flow to evaluate. The current assets likely reflect cash or receivables without offsetting payables beyond current liabilities. The positive net current assets indicate some liquidity but without recurring cash flows or operational income, the company’s cash flow position is not sustainable from a credit perspective. Working capital appears adequate relative to liabilities, but absence of revenue generation or profit calls into question ongoing liquidity management.

4. Monitoring Points:

• Confirmation of trading commencement or revenue generation going forward.
• Changes in fixed assets indicating investment in operational capacity.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Movement in current assets and liabilities to assess working capital trends.
• Any capital injections or shareholder funding to support growth or operations.
• Directors’ plans for business development or restructuring to mitigate dormancy risk.