Company Number: 12760910

Analysis Date: 2025-07-29 12:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   C & L Amery Limited shows signs of financial recovery in the recent year but remains a higher risk borrower. The company moved from significant net liabilities in 2022 to a small positive net asset position in 2023, indicating some improvement. However, the company has a history of negative equity and persistent working capital deficits, which raises concerns about liquidity and operational stability. Approval for credit facilities should be conditional on obtaining detailed cash flow forecasts, evidence of ongoing profitability, and possibly personal guarantees given the small equity base and limited financial buffers.

2. Financial Strength:
   The balance sheet indicates marginal net assets of £1,328 as of 31 July 2023, up from a negative £18,075 the previous year. This turnaround is driven by improved current assets (£14,453) including cash (£8,453) and trade debtors (£6,000), combined with lower current liabilities (£15,746). Fixed assets have reduced to £2,621, reflecting depreciation and possibly asset disposals. Shareholders’ funds remain very low at £1,328, highlighting minimal capital cushion. The company’s capital structure is very thin and exposes it to risk if cash flow deteriorates.

3. Cash Flow Assessment:
   Current liabilities exceed net current assets by £1,293, reflecting a slight working capital deficit, though much improved from prior years when deficits were over £23,000. Cash holdings of £8,453 provide some liquidity to manage short-term obligations. However, the relatively high taxation and social security creditor balance (£15,311) is a concern and may indicate payment delays or cash flow stress. The company employs only one person, which limits fixed overheads but also indicates a small scale of operations. Close monitoring of cash flow conversion from debtors and control of payables is critical.

4. Monitoring Points:

• Continued improvement in net current assets and positive working capital.
• Timely settlement of taxation and social security liabilities to avoid enforcement action.
• Cash flow forecasts and profit generation to sustain operations and build equity.
• Any changes in director or ownership structure that may impact control or financial commitment.
• Potential external economic impacts on the "Other service activities" sector which may affect revenue stability.