Company Number: 13917978

Analysis Date: 2025-07-29 20:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Halliwell Jones Deva Limited is a newly incorporated small private limited company operating in the motor vehicle sales and maintenance sector. The company shows positive net assets and working capital for the latest financial year (2023), with a significant improvement from the prior year. However, the company exhibits substantial related party balances, particularly amounts owed to group undertakings (£702,819), which represent a material part of current liabilities. This reliance on affiliated entities for funding and trade exposes some risk. The company’s trading agreement with an associated rental company carries contingent purchase commitments, potentially impacting liquidity if market conditions deteriorate. Conditional approval is recommended, subject to ongoing monitoring of related party exposure, profitability trends, and cash flow stability.

2. Financial Strength:

• Net assets increased to £144,144 at 31 December 2023, up from £100 in 2022, reflecting initial profit retention.
• Tangible fixed assets increased substantially, indicating investment in operational capacity.
• Current assets grew markedly to £1.15m, driven by stock (£435k), debtors (£330k), and cash (£381k), improving liquidity.
• Current liabilities rose to £1.04m, mostly due to trade creditors and related party payables, but net current assets remain positive at £109,746.
• The balance sheet shows a sound equity base for a small entity, but the heavy reliance on group company liabilities weakens independent financial strength.

3. Cash Flow Assessment:

• Cash on hand improved significantly to £380,751 from £21,564, enhancing short-term liquidity.
• Positive net current assets indicate adequate working capital to meet short-term obligations.
• The company’s exposure to committing to purchase rental vehicles (£392,324) underlines the need for careful cash flow management.
• Absence of income statement details limits assessment of operating cash generation, but retained profits suggest some operational profitability.
• Monitoring cash conversion cycle and debtor collections is recommended to avoid liquidity strain.

4. Monitoring Points:

• Ongoing reliance on related party financing and trade payables should be closely tracked to avoid overextension and ensure arm’s-length terms.
• Profitability trends and cash flow from operations need review when future accounts become available to confirm sustainable debt servicing capacity.
• Impact of vehicle purchase commitments and inventory turnover on liquidity, especially in fluctuating market conditions, requires vigilance.
• Director appointments and governance changes should be observed for any operational or strategic shifts.
• Compliance with filing deadlines is currently good; maintain timely filings to avoid penalties or regulatory issues.