BRAMERTON CONDIMENTS LTD
Company number 07809456 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: Bramerton Condiments Ltd
1. Credit Opinion: CONDITIONAL
Reasoning: While the company presents a strong net asset position of £9.1M with negligible external liabilities, this is fundamentally a holding vehicle with no trading operations, zero employees, and accumulated operating losses. 92.5% of total assets comprise intercompany receivables due from group undertakings, meaning the company's ability to service any debt obligation depends entirely on the financial health and willingness of related entities to settle these balances. Any credit facility should be conditional upon parent company guarantees and satisfactory credit assessment of the wider group structure.
2. Financial Strength
Balance Sheet Summary (YE 2024):
| Metric | 2024 | 2023 | Movement |
|---|---|---|---|
| Total Assets | £9,142,553 | £6,705,409 | +36.4% |
| Net Assets | £9,133,879 | £6,683,730 | +36.6% |
| Shareholders' Funds | £9,133,879 | £6,683,730 | +36.6% |
| Total Liabilities | £16,583 | £30,000 | -44.7% |
Capital Structure: - Share Capital: £230 - Share Premium: £9,409,103 (increased by £2.5M from £6,909,103) - Retained Losses: (£275,454) (worsened from (£225,603)) - Net Equity: £9,133,879
Assessment: The balance sheet appears superficially strong with minimal leverage (liabilities represent just 0.18% of total assets). However, asset quality is a significant concern. The £8,453,926 due from group undertakings (up 46.7% from £5,748,080) represents funds advanced to related companies with no disclosed terms, maturity, or security. The £2.5M increase in share premium indicates fresh capital injection from shareholders, but this has been immediately on-lent to group entities rather than retained within the business.
The accumulated P&L deficit grew by £49,851, indicating ongoing administrative costs not covered by revenue. This is a dormant operational shell sustained by shareholder capital.
3. Cash Flow Assessment
Liquidity Position:
| Metric | 2024 | 2023 |
|---|---|---|
| Cash | £688,627 | £907,924 |
| Current Assets | £9,142,553 | £6,705,409 |
| Current Liabilities | £412 | £30,000 |
| Net Current Assets | £9,142,141 | £6,675,409 |
| Current Ratio | 22,191:1 | 224:1 |
Cash Flow Observations: - Cash declined by £219,297 (24.2%) despite the £2.5M capital injection - This implies approximately £2.7M was advanced to group undertakings during the year - The company has no trade debtors, no revenue, and no trade creditors of substance (£412) - Working capital is theoretically very strong, but £8.45M of current assets are intercompany receivables with uncertain collectibility and no disclosed repayment terms
Assessment: While the current ratio appears exceptional, this is misleading. The company has no independent means of generating cash flow. Repayment capacity for any new facility would rely entirely on calling in intercompany balances, which would create liquidity pressure elsewhere in the group. The declining cash balance despite capital injection is a concerning trend.
4. Monitoring Points
| Risk Area | Metric | Current Status | Concern Level |
|---|---|---|---|
| Intercompany Exposure | Amounts due from group undertakings / Total Assets | 92.5% | 🔴 High |
| Operational Viability | Revenue generation | Zero | 🔴 High |
| Cash Trajectory | Cash balance year-on-year | -24.2% | 🟡 Medium |
| Accumulated Losses | P&L reserve movement | (£49,851) loss in year | 🟡 Medium |
| Compliance | Confirmation statement | Overdue | 🟡 Medium |
| Capital Maintenance | Share premium injections | £2.5M in year | 🟢 Positive |
| Leverage | External debt | Near zero | 🟢 Positive |
Key Monitoring Requirements:
-
Intercompany Balance Quality: Obtain details of the £8.45M due from group undertakings — repayment terms, security, aging, and the creditworthiness of counterparties. Request group structure chart and ultimate parent financials.
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Group Cash Flow: Understand the circular flow of funds — capital is being injected and immediately on-lent. Assess whether the broader group can support repayment without distress.
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Purpose of Facility: Clarify whether any lending would fund the company's own activities or be downstreamed to group operating entities. If the latter, lend directly to the operating entity instead.
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Parent Guarantee: Any facility should be guaranteed by the ultimate holding company or the entities benefiting from the intercompany advances.
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Filing Compliance: The overdue confirmation statement should be rectified promptly — whilst minor, it suggests administrative inattention.
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Shareholder Commitment: Monitor for further capital injections or withdrawals. The £2.5M share premium increase demonstrates shareholder support, but the mechanism of immediate on-lending dilutes the benefit to this entity.