Company Number: 12828414

Analysis Date: 2025-07-20 11:32 UTC

1. Credit Opinion: APPROVE with conditions. Chrono Swiss Limited shows improving net asset growth and positive working capital, indicating a stable financial base to support credit facilities. However, the company is young (incorporated in 2020) and operates with a single director/shareholder, which increases operational and governance risks. The significant increase in current liabilities (from £43.9k to £64.3k) warrants monitoring to ensure they do not strain liquidity. Approval is recommended with standard credit limits and regular financial reviews.

2. Financial Strength: The balance sheet is modest but strengthening. Net assets increased from £17,203 in FY2023 to £21,293 in FY2024, reflecting retained earnings growth. Fixed assets are minimal (£79), which is typical in retail of watches and jewellery where inventory is the main asset. Share capital is nominal (£1), and all equity is built from retained earnings. The company operates within a small exemption regime, limiting detailed financial disclosures but showing sound equity growth.

3. Cash Flow Assessment: Cash at bank improved substantially from £5,032 to £35,913, enhancing liquidity. Net current assets rose to £21,214, supported by stable inventory levels (£47,576) and lower debtor balances (£2,000). However, current liabilities jumped by ~46% to £64,275, mostly from other creditors (£61,033), which could indicate increased short-term payables or accruals. The company’s cash position currently appears sufficient to cover short-term obligations, but the concentration of liabilities should be closely tracked.

4. Monitoring Points:

• Monitor the trend in current liabilities, especially other creditors, to ensure no overdue payables or supplier pressures.
• Track debtor days and stock turnover to confirm efficient working capital management.
• Review annual accounts for continued growth in retained earnings and net assets.
• Observe any changes in director/shareholder structure or governance that could impact credit risk.
• Monitor trading performance and cash flow statements when available to assess ongoing debt servicing capacity.