Company Number: 12817410

Analysis Date: 2025-07-20 16:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Devon Deer Ltd operates in niche agricultural and hunting services with a micro-entity profile. The company shows a modest recovery in net assets in the latest year after previous negative equity. However, the significant current liabilities due after one year (£48,423) relative to net assets (£18,648) suggests financial leverage and potential liquidity constraints. The company's ability to service debt and meet obligations depends on maintaining or growing cash flows from operations. Directors have maintained compliance with filings and appear engaged. Recommend credit approval with conditions: require regular monitoring of cash flow and covenant on working capital levels.

2. Financial Strength:

• The balance sheet shows improvement in net assets from a negative £21,504 in 2023 to positive £18,648 in 2024, indicating some recovery.
• Fixed assets decreased to £5,636 from £9,036, possibly due to disposals or depreciation.
• Current assets increased notably to £62,383, while current liabilities due within one year are minimal (-£948), resulting in strong net current assets of £61,435.
• However, the bulk of liabilities fall due after one year (-£48,423), which is substantial against equity, indicating leverage and potential long-term obligations.
• Overall, the company shows a fragile but improving financial position with limited asset base and modest equity.

3. Cash Flow Assessment:

• Current assets are largely in short-term assets, providing liquidity.
• Very low current liabilities due within one year suggests manageable short-term cash obligations.
• Net current assets are positive and have more than doubled compared to prior year, indicating improved working capital.
• However, the presence of significant long-term liabilities may pressure future cash flows if not matched by earnings.
• The company has a small workforce (2 employees), keeping fixed overheads low, which supports cash flow resilience.
• No direct cash balances disclosed, but the large current assets likely include receivables and inventory linked to operations.

4. Monitoring Points:

• Track net asset and equity position for continued improvement or deterioration.
• Monitor the composition and maturity of long-term liabilities to assess refinancing risk.
• Watch cash flow from operations and liquidity ratios to ensure the company can meet upcoming obligations.
• Review profitability trends and gross margins in farming and hunting services to confirm business viability.
• Keep oversight on directors’ compliance with filing deadlines and governance standards.
• Evaluate any changes in ownership or control that could affect strategic direction or credit risk.