Company Number: 15023273

Analysis Date: 2025-07-29 14:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Chiverton Lock & Leave Limited is a newly incorporated private limited company (since July 2023) operating in the warehousing and storage sector. The company’s first annual accounts indicate it is asset-backed but currently showing negative working capital and substantial finance lease obligations. The ability to service debt is contingent on generating sufficient operating cash flows going forward. Given its early stage and modest equity base (£1,455 net assets), credit approval should be conditional on periodic financial monitoring and confirmation of operational progress and cash flow generation.

2. Financial Strength:
   The balance sheet shows fixed tangible assets of approximately £42,900, financed largely through hire purchase/finance leases totaling £34,700. Current liabilities (£26,833) exceed current assets (£5,424), resulting in negative net working capital of £21,409. The company’s net assets are positive but minimal (£1,455), reflecting low equity funding (£100 share capital plus retained earnings). The gearing is high due to finance lease obligations, which increases financial risk. No audit was performed, and turnover or profitability figures are not disclosed, limiting the assessment of profitability and cash flow from operations.

3. Cash Flow Assessment:
   Cash at bank and in hand is low (£5,424) relative to current liabilities, indicating tight liquidity. Negative net current assets suggest reliance on short-term creditor funding or expected inflows to meet obligations. The company’s finance lease commitments total £34,768 spread over the next five years, requiring consistent cash generation to avoid default. The absence of turnover or profit data, coupled with only one employee (the director), suggests a small operational scale with potential cash flow volatility in the early trading period.

4. Monitoring Points:

• Quarterly or semi-annual management accounts to track revenue growth and operating cash flows.
• Timely servicing of lease payments and avoidance of arrears on finance leases.
• Working capital trends and liquidity ratios to ensure current liabilities remain manageable.
• Any additional capital injections or debt restructuring to improve financial flexibility.
• Confirmation of business development in warehousing operations and client contracts.