Company Number: 15054842

Analysis Date: 2025-07-20 12:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Dutton Commercial Middlewich Limited is a recently incorporated private limited company in the real estate letting sector. The company shows a modest investment property asset but currently reports net current liabilities and a small net deficit in equity. The majority of its short-term liabilities relate to amounts owed to a group undertaking, which suggests intercompany financing rather than external debt. Given its new status and initial losses, credit approval should be conditional upon monitoring group support and future trading performance. The company’s ability to service external debt independently is limited at this stage.

2. Financial Strength:
   The balance sheet shows total investment property assets valued at £53,308, which is the main fixed asset. Current assets are minimal (£10,930), mostly cash (£10,835), and debtors (£95). Current liabilities total £64,440, dominated by £63,870 owed to a related group company. Net current liabilities are £53,510, leading to net liabilities of £202 and negative shareholder funds of £302. This weak equity position is typical for a start-up company but indicates limited financial buffer. The company’s financial strength depends heavily on the group company’s continued support.

3. Cash Flow Assessment:
   Cash at hand is low but positive (£10,835), and trade creditors are minimal (£570). The substantial current liabilities to the group undertaking indicate reliance on internal funding rather than external creditors. There is no indication of external borrowings or overdrafts. Working capital is negative, suggesting potential strain if the company moves away from group funding or faces unexpected cash demands. Cash flow going forward should be closely watched, especially for liquidity management and timing of intercompany settlements.

4. Monitoring Points:

• Track the company’s ability to generate operating cash flow and reduce reliance on intercompany funding.
• Monitor the fair value and occupancy status of the investment property asset to assess potential income streams.
• Review future financial filings for improvements in net current assets and equity position.
• Watch for any changes in group financial support or intercompany creditor balances.
• Confirm timely filing of accounts and confirmation statements to ensure compliance.