Company Number: 12830836

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Chewi Limited operates in the real estate sector, holding investment properties valued at approximately £563k. The company shows positive net assets, which increased from £28k in 2023 to £36k in 2024, indicating modest growth. However, the company exhibits significant net current liabilities (-£106k), with current liabilities (£131k) exceeding current assets (£25k), signaling potential short-term liquidity pressure. Long-term liabilities (£415k) also indicate leveraged financing, presumably secured against investment properties. The absence of employees and limited turnover data constrain full cash flow visibility. Overall, the company appears solvent but carries short-term liquidity risk. Credit approval is recommended on a conditional basis, subject to monitoring the company’s ability to improve working capital and meet near-term obligations.

2. Financial Strength:
   The balance sheet is dominated by investment property (£563k), held at fair value with no depreciation, reflecting asset stability. Tangible fixed assets are minimal (£860 net book value). Shareholders’ funds are low (£36k) relative to total liabilities, indicating high gearing, with long-term liabilities of £415k. The rise in net assets from £28k to £36k is positive but marginal. Net current liabilities have improved slightly (from -£132k to -£106k), yet remain a concern. Overall, the company’s financial strength is moderate, supported by asset backing but weakened by limited equity and elevated leverage.

3. Cash Flow Assessment:
   Cash at bank improved from £11.6k to £24.6k year-on-year, suggesting some positive cash generation or financing inflow. However, current liabilities remain substantially higher than current assets, indicating potential difficulties in meeting short-term liabilities without refinancing or asset disposals. Absence of employees implies low operational cash outflows, but no direct profit and loss data is provided to confirm operating cash flow sufficiency. Working capital remains negative, requiring cautious monitoring. The company’s liquidity position is vulnerable in the short term but supported by underlying asset values.

4. Monitoring Points:

• Track changes in net current assets and liquidity ratios to ensure improvement in working capital.
• Monitor repayment or refinancing of long-term liabilities to manage gearing levels.
• Review cash flow statements and profit & loss disclosures (when available) for operational cash generation.
• Assess any changes in fair value of investment properties that could impact net asset value and collateral quality.
• Watch director appointments and any changes in ownership/control that may affect governance or strategy.