CHEVIOT VIEW LEISURE LTD

Executive Summary

Cheviot View Leisure Ltd holds a strategic position combining holiday accommodation and domestic construction, supported by significant tangible assets. However, its current financial structure, characterized by high liabilities and negative equity, poses immediate liquidity risks that require urgent financial restructuring. Unlocking growth will depend on leveraging property assets, expanding market reach, and stabilizing working capital to enable sustainable operational scaling.

CHEVIOT VIEW LEISURE LTD - Analysis Report

Company Number: 13505791

Analysis Date: 2025-07-19 13:02 UTC

1. Executive Summary
   Cheviot View Leisure Ltd operates within the niche of holiday and collective accommodation, supplemented by construction of domestic buildings, positioning itself as a small but ambitious player in the leisure and property development sectors. Despite significant asset investment, the company currently faces a challenging financial structure marked by substantial current liabilities exceeding current assets, resulting in net liabilities and shareholder deficit. Strategically, the company holds valuable tangible assets and direct control under a single owner but must urgently address liquidity and working capital constraints to capitalize on growth opportunities.

2. Strategic Assets

• Tangible Asset Base: The company’s investment property valued at approximately £1.37 million alongside plant and machinery and motor vehicles provides a solid foundation of fixed assets, which could serve as collateral for financing or as operational infrastructure.
• Niche Market Position: Operating in the holiday accommodation sector combined with domestic construction expertise offers a differentiated, vertically integrated business model capable of managing property development and leisure services.
• Owner Control: The 75-100% ownership and directorship by Phillip Paul Cafferty ensures agile decision-making and clear strategic direction without shareholder conflicts.
• Emerging Operational Capacity: Employment of at least one staff member indicates initial operational scaling, with potential to grow as business stabilizes.

3. Growth Opportunities

• Leveraging Property Assets: The sizable investment property presents opportunities for expansion either through enhanced accommodation offerings or development projects, which could increase revenue streams.
• Market Expansion: Broadening the customer base by targeting regional and domestic tourism growth trends could drive accommodation occupancy and profitability.
• Vertical Integration: Expanding construction services for domestic buildings could provide additional revenue and cost control, complementing the leisure offerings.
• Financial Restructuring: Securing new financing or restructuring current liabilities could improve liquidity, enabling reinvestment in marketing, service enhancement, and operational improvements.
• Digital and Direct Marketing: Enhancing online presence and direct booking channels could improve margins and customer engagement, capitalizing on the active company website and contact points.

4. Strategic Risks

• Liquidity Constraints: Current liabilities (£1.85M) vastly exceed current assets (£335k), leading to a net current asset deficit of over £1.5 million, which threatens day-to-day operational funding and solvency without external support.
• Negative Equity: Net liabilities and shareholder deficit indicate financial strain that could limit access to credit and investor confidence.
• Concentration Risk: Single owner control, while agile, exposes the company to key-person risk and potential governance limitations.
• Market Sensitivity: The leisure and accommodation market is vulnerable to economic downturns, travel restrictions, and seasonality, which could impact revenue stability.
• Regulatory and Compliance: As a private limited company engaging in construction and accommodation, the firm must maintain compliance with health, safety, and planning regulations; failure could result in fines or operational disruption.