Company Number: 14062481

Analysis Date: 2025-07-29 14:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Chrisal Limited, a recently incorporated private limited company (2022), operates in the investment property sector (SIC 68209). The company shows a positive net asset position with growth in equity from £160,632 (2023) to £237,883 (2024). However, the company carries significant long-term bank debt (£393,822) relative to its asset base (£562,883 fixed assets). The current liabilities reduced notably, improving net working capital from negative £80,610 to a positive £68,822. The positive cash balance (£88,710) supports short-term liquidity. The company is servicing debt but with limited trading history and reliance on investment property valuation, ongoing monitoring of rental income and debt servicing ability is critical. Approval is conditional on continued positive cash flows and no material deterioration in property values or loan covenants.

2. Financial Strength:

• Fixed assets (investment property) remain stable at £562,883, representing the primary asset base.
• Net assets increased 48% year-on-year to £237,883, reflecting retained earnings growth.
• Share capital is nominal (£102), typical for small private companies, with equity mainly from reserves.
• Long-term borrowings increased by £72,181 (to £393,822), indicating reliance on external financing.
• Current liabilities decreased substantially (£19,888), improving liquidity metrics.
  Overall, balance sheet strength is moderate: solid asset backing but with significant leverage requiring careful servicing.

3. Cash Flow Assessment:

• Cash balance improved significantly from £7,810 to £88,710, indicating better liquidity management or inflows.
• Net current assets turned positive from negative, showing improved working capital position.
• No reported receivables as of 2024 suggests limited trade credit risk but also limited revenue streams beyond property rental.
• Current liabilities within manageable limits relative to cash and liquid assets.
  Liquidity profile is adequate for near-term obligations, but dependency on rental income and refinancing risk of bank loans should be monitored.

4. Monitoring Points:

• Rental income consistency and occupancy levels of the investment property to ensure stable cash inflows.
• Debt servicing capacity and adherence to loan covenants, especially given increased long-term borrowings.
• Property market trends impacting fair value of investment property and potential impairment risks.
• Cash flow trends in subsequent periods to confirm sustainability of working capital improvements.
• Director activities and any changes in ownership or control, given two principal shareholders/directors controlling equal shares and voting rights.