Company Number: 13131215

Analysis Date: 2025-07-19 12:43 UTC

1. Credit Opinion: APPROVE with caution.
   CP DELIVERY LTD is a micro-entity operating in freight transport by road with a short trading history since 2021. The latest accounts show improved net current assets and net equity compared to the prior two years. The company has demonstrated recovery from previous working capital deficits, indicating better short-term liquidity. However, fixed assets have reduced, and the business remains small with modest capital, suggesting limited financial buffer. The director’s involvement as a driver implies close management control but also potential operational dependency on a single individual. The company appears capable of servicing modest credit facilities but should be monitored closely for cash flow consistency and growth.

2. Financial Strength:

• Net assets increased from £7,736 (2023) to £9,834 (2024), reflecting retained earnings or capital injections.
• Net current assets improved significantly from a negative £2,539 in 2023 to a positive £2,984 in 2024, indicating stronger liquidity and working capital management.
• Fixed assets decreased from £10,275 to £6,850, possibly due to asset disposals or depreciation, which should be clarified.
• Share capital is nominal (£1), common for micro companies, with shareholder funds aligning with net assets.
  Overall, the balance sheet is stable, showing growth in equity and net working capital, which supports a moderate credit risk profile.

3. Cash Flow Assessment:

• Current assets (~£6,750), mostly likely cash and receivables, exceed current liabilities (~£3,766), providing a comfortable current ratio (~1.79).
• The positive net working capital suggests the company has sufficient short-term assets to cover immediate liabilities, reducing liquidity risk.
• No off-balance sheet liabilities reported.
• Average employee count is 2, consistent with micro entity status, indicating low fixed overheads.
  Given the company’s scale, cash flow is likely tight but manageable, assuming timely collection of receivables and controlled payables.

4. Monitoring Points:

• Continued improvement or stability in net current assets and net equity to ensure ongoing liquidity and solvency.
• Changes in fixed assets to understand capital investment or disposals that could impact operational capability.
• Director’s involvement in operations and any succession or management risks.
• Timeliness of future filings and any indications of late payments or financial distress.
• Business volume growth and profitability trends to assess capacity for debt servicing and expansion.