Credit Analysis: C3I GROUP LIMITED

1. Credit Opinion: CONDITIONAL (with significant reservations)

Reasoning: C3I Group Limited is technically insolvent with net liabilities of £493,798 and a persistent accumulated loss position. The company cannot service standalone debt obligations from its own resources. However, the entity operates within a group structure under PMY Technologies (UK) Limited, and the balance sheet is dominated by intra-group balances suggesting parental financial support. Any credit facility would be entirely dependent on the parent company's covenant and financial health.

Without a parent company guarantee: DECLINE

2. Financial Strength

Balance Sheet Position: Weak – Technically Insolvent

• The company has been in a net liability position since at least 2020 (earliest comparable data point shows -£51,819 net assets)
• Accumulated P&L losses have grown from £5,347 (2014) to £493,898 (2023), indicating sustained trading losses
• Share capital remains at a nominal £100 throughout – no equity investment to support the business
• The slight improvement in net liabilities year-on-year (£8,181 reduction) is marginal and does not alter the fundamental insolvency

Asset Quality: - Tangible fixed assets: Only £10,168 (mostly motor vehicles and fixtures – limited realisable value) - Debtors of £1,080,152 are overwhelmingly intra-group (£1,072,443 or 99.2%) - No independent trade debtors in 2023 (down from £1,274 in 2022) - The intercompany debtor has no standalone recovery value – it is dependent on the parent's willingness and ability to settle

Liability Structure: - Current liabilities of £1,521,624 vastly exceed current assets - Amounts owed to group undertakings: £1,474,868 (96.9% of current liabilities) - Bank loans of £110,833 total (£38,000 current + £72,833 non-current), secured over company assets - The secured creditor ranks ahead of any unsecured lender

3. Cash Flow Assessment

Liquidity: Critically Weak

• Cash position is wholly inadequate for a company with £1.5m of current liabilities
• The current ratio below 1.0 confirms the working capital deficit
• No trade creditors in 2023 suggests limited independent trading activity
• The company has no overdraft facility of substance (£298 only)

Working Capital Dependency: The company is entirely reliant on the parent company for working capital. The £1.47m owed to group undertakings is effectively a revolving credit facility from the parent. If this support were withdrawn, the company would be unable to meet its obligations and would likely enter formal insolvency.

Operational Cash Generation Concerns: - Employee headcount reduced from 6 to 1 – suggesting significant operational contraction - Pension contributions dropped from £53,729 to £6,285, consistent with the headcount reduction - No revenue or profit & loss figures are disclosed (small company exemptions), but the growing accumulated losses indicate ongoing trading losses

4. Monitoring Points

If credit is extended (conditional on parent guarantee), the following require ongoing surveillance:

Critical Metrics: 1. Parent Company Financial Health – Obtain and review consolidated and parent-only accounts for PMY Technologies (UK) Limited to assess group solvency and cash flow 2. Intercompany Balance Movements – Monitor whether the net intercompany position (£402,425 owed to parent net of amounts owed by group) is being managed or growing 3. Going Concern Assessment – The directors acknowledge the net deficit position; any withdrawal of parental support would trigger immediate insolvency 4. Employee Count – Further reductions below 1 employee would indicate the entity is becoming dormant 5. Bank Loan Compliance – £110,833 secured debt with specific repayment profile; monitor for covenant compliance 6. Filing Timeliness – Current filings are up to date; any delays could signal governance concerns

Red Flags: - Any change in PSC structure or reduction in parent ownership - Withdrawal or restructuring of intercompany facilities - Further accumulation of losses or deterioration in net asset position - Secured lender enforcing security or demanding repayment - Director resignations or changes

Additional Observations

Business Model: C3I Group appears to operate as a group service vehicle rather than a standalone trading entity. The SIC codes (IT consultancy and conference organising) and the previous name (C3I Events Limited until 2015) suggest a business that has evolved significantly. The current financial profile – with 99% of debtors and 97% of creditors being intra-group – indicates this entity is likely a cost centre or administrative hub within the PMY Technologies group.

Director Quality: Two directors in place (Paul Yeomans and Jason Hall). Mr Hall is also a PSC with >75% shareholding alongside the corporate PSC. No disqualification records identified. The accounts are prepared to FRS 102 Section 1A (small entities) and filed on time, demonstrating basic compliance.

Name Change: The company changed from C3I Events Limited in December 2015, suggesting a strategic pivot in business activities.