Company Number: 14194997

Analysis Date: 2025-07-20 17:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Pickering Bespoke Carpentry Limited is an active private limited company incorporated in 2022, operating in the manufacture of builders’ carpentry and joinery. The company shows a significant decline in net assets and working capital from March 2023 to March 2024, moving from a net positive working capital position (£2,876) to a net current liability position (-£3,186). This deterioration suggests cash flow pressures and potential liquidity issues. The company also owes nearly £10k to directors, interest-free and repayable on demand, indicating reliance on director funding. Given these factors, the credit facility could be approved conditionally if the company demonstrates a clear plan to restore positive working capital and improve cash flow stability, with close monitoring of financial performance.

2. Financial Strength:
   The balance sheet reveals very limited fixed assets (£3,771) and current assets (£15,278) primarily comprised of stocks (£11,913) and moderate cash balances (£3,245). Current liabilities have increased substantially to £18,464, driven by higher creditors including corporation tax and other tax liabilities (£7,371 combined). The net asset value has dropped sharply from £7,924 in 2023 to £585 in 2024, eroding equity and signaling weakened financial resilience. The company’s capital structure is minimal, with only £100 in called-up share capital and the remainder in a diminished retained earnings reserve. Overall, the financial strength is weak and vulnerable to adverse economic conditions or operational setbacks.

3. Cash Flow Assessment:
   Cash at bank improved from £1,321 to £3,245, but this is insufficient to cover current liabilities of £18,464. The negative net current assets position indicates a working capital deficit, which could impair the company’s ability to meet short-term obligations without further external support. The increase in wages and salaries from £6,040 to £26,295 reflects business growth but also adds to cash flow demands. The company’s reliance on director loans (~£9,850) to fund operations is a risk factor. Liquidity is tight, and cash flow management will be critical to avoid default.

4. Monitoring Points:

• Monthly cash flow projections and actuals versus budget to track liquidity
• Changes in stock levels and debtor collections to manage working capital efficiently
• Movement in director loans and plans for repayment or conversion
• Timely settlement of tax liabilities to avoid penalties and interest
• Profitability trends and cost control measures especially on payroll and overheads
• Any material changes in customer contracts or supply chain impacting revenue and costs