Company Number: 13252096

Analysis Date: 2025-07-20 17:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CHI Hub Ltd is a small private limited company engaged in management consultancy with a very modest balance sheet. The company is active with no overdue filings and a single director with significant control. However, the sharp decline in net assets and working capital from £1,540 in 2023 to £144 in 2024 signals financial deterioration. The current liquidity position is tight, but the company remains solvent with positive net assets. Credit approval should be conditional on improved cash flow management and monitoring of creditor and director loan balances.

2. Financial Strength
   The company’s net assets reduced significantly from £1,540 in 2023 to £144 in 2024. Current assets (primarily cash) dropped from £2,423 to £861, while current liabilities decreased slightly from £883 to £717. The reduction in shareholders' funds and profit and loss reserves reflects losses or withdrawals. The balance sheet is small, with minimal fixed assets indicated, and the company relies heavily on cash flow for operations. The director’s loan account has increased, which may indicate reliance on director funding.

3. Cash Flow Assessment
   Current cash levels at £861 barely cover short-term liabilities of £717, leaving a slim net working capital buffer of £144. This limited liquidity constrains the company’s ability to absorb unexpected expenses or delays in receivables. The company’s small scale, single employee structure, and low asset base heighten cash flow risk. Management should prioritize improving cash inflows and controlling costs to prevent liquidity stress.

4. Monitoring Points

• Track monthly cash flow closely to ensure adequate liquidity coverage of current liabilities.
• Monitor director’s loan account movements to assess dependency on director funding.
• Review turnover and profitability trends once turnover data is available to verify operational sustainability.
• Watch for any increased creditor balances or delayed payments which could signal financial strain.
• Confirm that all statutory filings remain up to date to avoid regulatory risks.