CHRIS MORGAN PHOTOGRAPHY LTD

Executive Summary

Chris Morgan Photography Ltd, a micro private limited company in specialist photography, shows improving financial strength with growing net assets and robust liquidity. The company demonstrates sound short-term cash flow management and compliance with filing requirements, supporting an approval for credit facilities. Continued monitoring of receivables and liabilities is advised to ensure ongoing repayment capacity.

CHRIS MORGAN PHOTOGRAPHY LTD - Analysis Report

Company Number: 14162575

Analysis Date: 2025-07-20 15:37 UTC

1. Credit Opinion: APPROVE
   Chris Morgan Photography Ltd demonstrates a solid financial position for its size and age. The company is newly incorporated (2022) but shows improving net assets and working capital year-on-year. It maintains a positive net current asset position and has no overdue filings, indicating good compliance and management discipline. The director’s loan account has significantly reduced, showing some repayment of internal liabilities. The business operates in a specialist photography niche, which may have stable demand. Overall, the company appears capable of servicing debt, though modest scale and limited history suggest monitoring for sustained cash flow is prudent.

2. Financial Strength:
   The company’s balance sheet shows healthy growth in shareholders’ funds from £37k in 2022 to £72.5k in 2024, nearly doubling in two years. Fixed assets increased due to new computer equipment purchases, supporting business operations. Current assets (largely cash and debtors) have risen to £83.7k, comfortably covering current liabilities of £34.4k, resulting in net current assets of £49.2k. The reduction in directors’ loan from £12.9k to £1.4k reduces related party risk. Overall, the financial strength is sound for a micro-entity with a stable equity base and manageable liabilities.

3. Cash Flow Assessment:
   Cash at bank increased significantly to £59k in 2024 from £10.4k in 2022, reflecting improved liquidity. Trade debtors decreased but remain substantial at £24.6k, indicating ongoing sales on credit. Current liabilities grew moderately but remain well covered by current assets, giving a strong working capital buffer. The company’s ability to maintain positive net current assets and increase cash holdings suggests adequate short-term liquidity and operational cash flow, supporting debt servicing capability.

4. Monitoring Points:

• Maintain or improve debtor collection efficiency to prevent cash flow pressure.
• Monitor growth in current liabilities, especially tax and VAT liabilities, to avoid liquidity strain.
• Track fixed asset investments to ensure they translate into revenue growth.
• Continue close oversight of directors’ loan account and other related party transactions.
• Given the company’s micro size and young age, watch for consistent profitability and cash generation in future filings.