CHEVALIER'S PROPERTIES LIMITED

Executive Summary

Chevalier’s Properties Limited operates in property letting with stable fixed assets but carries a negative equity position and substantial creditor balances, signaling tight financial health. The company shows limited short-term liquidity and ongoing solvency concerns, warranting a conditional credit approval with close cash flow monitoring and possible collateral or guarantees. Continued oversight of working capital and creditor management is essential to mitigate credit risk.

CHEVALIER'S PROPERTIES LIMITED - Analysis Report

Company Number: 12808350

Analysis Date: 2025-07-20 15:48 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Chevalier's Properties Limited shows a stable asset base predominantly in fixed assets, indicating investment in property consistent with its SIC code for letting and operating own real estate. However, the company carries net liabilities (£6,303 negative net assets) and significant long-term creditors (£335k+), which exceed current assets. The negative equity position and high creditor balances raise concerns about long-term solvency and repayment capacity. Given the company’s micro-account category and limited employee count, the scale is small but the financial structure is stretched. Approval may be considered with conditions such as regular cash flow monitoring, confirmation of creditor terms, and potential personal guarantees or collateral from directors.

2. Financial Strength:
   The balance sheet shows fixed assets of approximately £314k, which has remained constant over 4 years, suggesting no recent disposals or additions. Current assets have improved slightly from £9.7k to £12.6k, and net current assets are positive (£14.4k), indicating some short-term liquidity. However, current liabilities are substantial relative to current assets, and long-term creditors (£335k+) imply significant debt obligations. Net liabilities persist but have improved from -£11.3k to -£6.3k, a positive sign though still negative equity. Shareholders' funds remain negative, highlighting accumulated losses or financing through debt rather than equity. The company’s financial position is weak but stable, reliant on asset-backed finance.

3. Cash Flow Assessment:
   Current assets are low in absolute terms, mainly cash and receivables, and barely cover current liabilities. Net current assets are positive but tight, suggesting limited working capital buffer. The company has a small workforce (2 employees), which helps control overheads. Absence of profit and loss data limits full cash flow analysis, but ongoing creditor balances and negative equity imply cash flow pressure. The micro-entity exemption means less detailed disclosure, so cash flow forecasts and creditor payment patterns should be closely reviewed. The liquidity position is vulnerable if revenues decline or creditor terms tighten.

4. Monitoring Points:

• Monitor quarterly cash flow and working capital closely to detect liquidity stress early.
• Review creditor aging and any default or delay in payments.
• Track any changes in fixed asset valuation or disposals that could impact collateral value.
• Assess any director or shareholder capital injections or guarantees supporting solvency.
• Watch for improvements in net asset position and reduction of creditor balances.
• Confirm stability or growth in rental income or other operating revenues.
• Ensure timely filing of accounts and confirmation statements to avoid regulatory issues.