Company Number: 12417475

Analysis Date: 2025-07-29 20:05 UTC

Credit Opinion:
CONDITIONAL APPROVAL. Whatberry Limited shows ownership of a significant investment property valued at £321,478, but the company has persistent and large negative net current assets (£-237,927 in 2024), indicating liquidity strain. Current liabilities (£246,813) are substantially higher than current assets (£8,886), raising concerns about the company's ability to meet short-term obligations without relying on director loans, which currently amount to £240,124 interest-free and with no fixed repayment schedule. The directors have injected capital and provided financial support but the company’s reliance on these loans and lack of audit reduce transparency. Approval is recommended only if additional security or guarantees are provided and the company demonstrates improved working capital management.

Financial Strength:
The balance sheet is weighted toward a single investment property asset (£321,478) that has remained static in value since 2023. Shareholders’ funds have increased from £10,719 in 2023 to £31,357 in 2024, primarily due to retained earnings. However, the company’s net current liabilities remain high, driven by large short-term creditors (£246,813) and director loans (£240,124) classified as creditors. Long-term liabilities (bank loans of £52,194) are modest relative to the fixed asset base. Overall, the company’s solvency is supported by the property asset, but working capital deficiency and director loan dependency weaken financial resilience.

Cash Flow Assessment:
Cash on hand has increased from £2,728 in 2023 to £7,986 in 2024 but remains insufficient to cover current liabilities. Debtors are minimal (£900) and stable, indicating limited short-term cash inflows from trade. The company’s negative net current assets highlight a structural liquidity shortfall. The interest-free director loans without fixed repayment terms provide essential liquidity but pose a refinancing risk if the directors withdraw support. The absence of detailed profit and loss data limits assessment of operational cash generation, but the directors’ report suggests rental income as the main revenue source, which may be relatively stable but not sufficient to address current obligations.

Monitoring Points:

• Track working capital position and whether negative net current assets reduce.
• Monitor director loan balances and any formalisation of repayment terms or conversion to equity.
• Review upcoming filings for profit and loss information to assess operational cash generation.
• Watch for changes in investment property valuation and any impairment indicators.
• Assess if the company can reduce short-term creditors or refinance to improve liquidity.
• Ensure timely filing of accounts and confirmation statements to maintain transparency.