CALDWELL & DEMPSTER LIMITED

Executive Summary

Caldwell & Dempster Limited shows improving financial health and stable management with positive net assets growth and recovering working capital. However, liquidity remains tight due to high current liabilities and rising debtors, warranting conditional credit approval with close monitoring of cash flow and debtor management. The company’s progress suggests it can service debt obligations if operational cash flow is carefully managed.

CALDWELL & DEMPSTER LIMITED - Analysis Report

Company Number: SC691994

Analysis Date: 2025-07-19 12:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Caldwell & Dempster Limited demonstrates improving financial strength with positive net current assets in the latest year, reversing prior working capital deficits. However, current liabilities remain high relative to current assets, indicating tight liquidity. The company operates in retail motor vehicle parts, a sector that can be competitive and sensitive to economic cycles. Directors appear stable and experienced with no adverse records. Credit approval is recommended with conditions on ongoing monitoring of liquidity and debtor collection efficiency to mitigate working capital risk.

2. Financial Strength
   The company has shown a solid upward trajectory in net assets, rising from £17.6k in 2021 to £109.3k in 2024, reflecting retained earnings growth and asset base expansion. Fixed assets increased due to capital expenditure, supporting operational capacity. Shareholders’ funds increased commensurately, indicating reinvestment of profits rather than reliance on external equity. The balance sheet is free from long-term liabilities disclosed here, suggesting limited leverage.

3. Cash Flow Assessment
   Current assets of £261.3k against current liabilities of £251.2k in 2024 produce a modest positive net current asset position of £10.1k, an improvement from negative working capital in previous years. Cash balances decreased slightly but remain robust at £135.8k. Debtors have nearly doubled year on year, which requires attention to avoid cash flow strain. Trade creditors have also increased, indicating extended supplier credit. Overall liquidity is adequate but tight; effective working capital management is essential.

4. Monitoring Points

• Debtor days and collection periods to ensure cash inflows meet operational needs.
• Maintenance of positive net current assets to avoid liquidity stress.
• Trend in trade creditor balances and payment terms to manage supplier relationships.
• Profitability trends once income statements are available to confirm sustainable earnings.
• Capital expenditure plans and their impact on cash flows and fixed asset utilization.
• Any changes in directors or governance that might affect operational stability.