CHEYNEYS LODGE LIMITED

Executive Summary

Cheyneys Lodge Limited demonstrates a solid start with improving financial metrics, positive working capital, and strong cash balances, supported by experienced directors. While credit approval is recommended, ongoing monitoring of debtor collections and tax liabilities is advised due to the company’s limited operating history. Overall, the company appears financially stable and capable of meeting its obligations in the near term.

CHEYNEYS LODGE LIMITED - Analysis Report

Company Number: 14500017

Analysis Date: 2025-07-20 15:58 UTC

1. Credit Opinion: APPROVE with monitoring conditions. Cheyneys Lodge Limited is a recently incorporated private limited company (Nov 2022) engaged in management consultancy activities (SIC 70229). It has demonstrated strong growth in net current assets and shareholders’ funds over its first two full financial years, indicating good financial stewardship and business traction. The directors include a qualified accountant, which supports sound financial management. The company’s ability to maintain positive working capital with increasing cash and receivables suggests adequate capacity to meet short-term obligations. However, given its young age and limited operating history, continued performance and cash flow monitoring is recommended before extending larger or longer-term credit facilities.

2. Financial Strength: The balance sheet shows healthy improvement from Nov 2023 to Nov 2024:

• Current assets increased from £47.1k to £110.4k, driven by a substantial rise in trade debtors (£0.4k to £54k) and cash balances (£46.7k to £56k).
• Current liabilities rose from £15.4k to £36.2k, mainly due to increased tax and VAT liabilities.
• Net current assets nearly doubled from £31.7k to £74.2k.
• Shareholders’ funds grew from £31.7k to £74.2k, reflecting retained earnings accumulation after dividends. The company maintains a strong liquidity position and positive equity with no apparent gearing. Share capital is minimal (£200), typical for new companies.

3. Cash Flow Assessment: Cash at bank is robust at £56k, with a positive net working capital of £74k supporting operational liquidity. The substantial increase in trade debtors could be a credit consideration; it will be important to assess debtor quality and collection practices to ensure cash inflows remain timely. The company declared dividends (£34k) in the latest year, which is consistent with profitability but should be balanced against cash needs. Overall, the company appears able to service short-term liabilities comfortably.

4. Monitoring Points:

• Debtor aging and collection performance to confirm cash flow reliability.
• Tax and VAT liabilities trend, ensuring timely settlements.
• Profitability trends once income statements are available (currently not filed).
• Any changes in director appointments or control.
• Continued compliance with filing deadlines.
• Impact of any broader economic or industry changes on consultancy demand.