Company Number: 13158579

Analysis Date: 2025-07-20 16:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Henley Contractors Ltd is an active private limited company engaged in combined facilities support activities. The company shows moderate financial strength with positive net assets and working capital, but the recent year-on-year decline in net assets and cash reserves, coupled with sizeable provisions for liabilities, suggests some caution. The company’s ability to meet short-term obligations is adequate but weakening, and the secured loan exposure requires closer monitoring. Approval for credit facilities is recommended with conditions focused on regular review of liquidity and covenant compliance.

2. Financial Strength:

• Net assets have decreased from £291,630 (2024) to £242,950 (2025), a reduction of approximately 17%, indicating some erosion of equity possibly due to operating losses or increased provisions.
• Fixed assets are significant at £273,087, but have declined from £335,467 last year, reflecting depreciation and disposals.
• Provisions for liabilities remain high (£53,332) and have only slightly reduced, which may impact future profitability and net asset recovery.
• Share capital is minimal (£2), typical for small private companies, so equity is mainly retained earnings.
• No evidence of audit, but the financial statements comply with small company regime and accounting standards (FRS 102).

3. Cash Flow Assessment:

• Current assets (£94,741) exceed current liabilities (£69,542), yielding a positive net current asset position of £25,199, but this is down from £40,601 the previous year, indicating reduced working capital buffer.
• Cash on hand has fallen notably from £52,404 to £36,460, signifying reduced liquidity availability.
• Trade debtors remain stable around £58k, showing consistent receivables collection.
• The company has a small long-term loan (£2,004) secured on assets, recently reduced from £26,054, suggesting some debt repayment.
• The cash flow position is adequate but weakening, warranting close monitoring of cash conversion cycles and creditor management.

4. Monitoring Points:

• Track quarterly cash flow and working capital trends to detect further deterioration in liquidity.
• Monitor provisions for liabilities closely, as sustained high provisions may indicate contingent risks or ongoing disputes affecting profitability.
• Review debt servicing ability and security coverage related to the current and any new credit facilities.
• Follow revenue and profit margins carefully once profit and loss data become available, as recent net asset declines suggest possible operating pressures.
• Consider director and PSC stability; no adverse records were noted, which supports continued sound governance.