Company Number: 13437205

Analysis Date: 2025-07-20 16:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Rayhan Chauffering Ltd is a micro-entity operating in freight and passenger road transport, currently active and owned wholly by a single director with no adverse conduct records. The company shows a positive net asset position but has a significant long-term creditor balance relative to its size, which raises concerns about debt servicing capacity. The decline in fixed assets and net assets in the latest year suggests some financial pressure. Approval is recommended with conditions such as monitoring cash flow closely and requiring updated management accounts before further credit extension.

2. Financial Strength:
   The balance sheet as of 30 June 2024 shows fixed assets of £36,982 and current assets of £5,721, against current liabilities of only £2,586, resulting in net current assets of £3,135. However, there is a substantial creditor balance due after one year of £31,882, which reduces total net assets to £8,235. Compared to the previous year, total net assets decreased from £9,363 to £8,235, indicating a mild deterioration in financial strength. The share capital is minimal at £100, reflecting likely limited equity injection. Overall, the company maintains a positive net asset position but with limited equity buffer and significant long-term liabilities.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by £3,135, indicating positive short-term liquidity and working capital. However, total creditors due after one year are large relative to net assets, potentially impacting medium-term liquidity. The company’s average employee count rose from zero to one, indicating some operational activity but limited scale. The reduction in fixed assets could reflect asset disposals or depreciation without replacement, which may affect operational capacity. Without full cash flow statements, it is essential to request management accounts to verify ongoing cash generation and ability to meet creditor obligations.

4. Monitoring Points:

• Track creditor balances, especially long-term debts, to ensure repayment schedules are met.
• Monitor cash flow trends via interim financials or management accounts to confirm liquidity.
• Watch for changes in net assets and fixed asset base to detect early signs of distress.
• Confirm ongoing compliance with filing deadlines to avoid regulatory risk.
• Evaluate any changes in ownership or director appointments that could impact governance.