Company Number: 12529229

Analysis Date: 2025-07-29 16:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   RH & RW Clutton Property Limited is a private limited company operating in the real estate agency sector. The company is relatively young (incorporated in 2020) and currently active with no signs of distress such as administration or liquidation. However, the company’s net asset position has deteriorated significantly from £63,557 in 2023 to a minimal £1,716 in 2024, primarily due to a large increase in liabilities and a sharp decline in cash balances. The presence of bank loans and finance lease obligations increases financial leverage and risk. Given these factors, credit approval should be conditional, requiring close ongoing monitoring and potentially financial covenants or guarantees to mitigate risk.

2. Financial Strength
   The balance sheet shows fixed assets of £57,739 with goodwill of £16,500, indicating some intangible value but also amortisation reducing goodwill. Current assets stand at £449,070, mainly driven by debtors (£448,314) and minimal cash (£756), while current liabilities total £345,655, leaving net current assets of £103,415. Notably, current liabilities have decreased slightly from prior year but long-term liabilities remain high at £151,817. The company’s net assets are barely positive at £1,716, down sharply from £63,557 the year before, reflecting increased borrowings and tightened liquidity. The equity base is very thin, posing concerns about financial resilience.

3. Cash Flow Assessment
   Cash at bank has fallen dramatically from £165,033 in 2023 to £756 in 2024, which is a significant liquidity concern. Although trade debtors have increased moderately, the company appears to have converted less receivables to cash, possibly indicating collection or operational challenges. Current liabilities remain substantial, including bank loans (£39,876 due within one year) and other creditors (£39,945). The company relies heavily on debtor balances to support working capital, but the low cash balance and high debt service obligations could strain short-term liquidity. The hire purchase obligation for office equipment adds fixed repayment commitments.

4. Monitoring Points

• Liquidity ratios, especially current ratio and quick ratio, given the low cash position
• Timeliness and collectability of trade debtors to ensure working capital sufficiency
• Debt servicing capacity including interest and principal repayments on bank loans and finance leases
• Profitability trends and cash generation from operations, which are not explicitly disclosed but critical
• Any changes in shareholder support or injection of equity to bolster net assets
• Compliance with any loan covenants and timely filing of accounts and returns (currently up to date)
• Management stability and strategy to improve financial position, given director changes in 2023