PICKERING BESPOKE CARPENTRY LIMITED

Executive Summary

Pickering Bespoke Carpentry Limited exhibits early stage operational growth but faces significant liquidity and working capital challenges, with net current liabilities and diminished equity. Credit approval should be conditional on the company’s ability to demonstrate a robust cash flow recovery plan and maintain close financial monitoring. The company’s financial position is fragile, demanding prudent credit risk management and oversight.

PICKERING BESPOKE CARPENTRY LIMITED - Analysis Report

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