Company Number: 13042092

Analysis Date: 2025-07-20 11:55 UTC

1. Credit Opinion: APPROVE with monitoring.
   Marquee Chameleon Limited shows improving financial strength with growing net assets and positive working capital compared to prior years. The company has no overdue filings and is active with stable management. However, current liabilities remain significant and should be monitored relative to cash inflows and debtor collections to ensure ongoing liquidity.

2. Financial Strength:
   The balance sheet has strengthened considerably over the last three years. Net assets increased from a negative £63k in 2020 to a positive £236k in 2023, reflecting retained earnings and asset growth. Fixed assets have grown steadily, indicating investment in operational capacity. The company has no significant long-term debt except other creditors after one year (£72k), which is manageable given asset levels. Share capital is minimal (£1), placing emphasis on retained profits as equity.

3. Cash Flow Assessment:
   Cash balances have nearly tripled in the latest year to £462k, providing a strong liquidity buffer. Current assets at £603k comfortably exceed current liabilities of £485k, yielding positive net current assets of £118k. Debtor levels are stable, supporting receivables management. However, current liabilities have increased sharply, mainly other creditors and taxation/social security, necessitating ongoing cash flow monitoring to ensure timely payments.

4. Monitoring Points:

• Watch current liabilities growth relative to cash and debtor turnover to avoid liquidity strain.
• Monitor operating lease commitments (£603k outstanding) as they represent future cash outflows.
• Track profitability and cash generation since profit and loss details are not disclosed; ensure reserves grow to support debt coverage.
• Observe any changes in director or shareholder control that could impact financial stewardship.