Company Number: 12938399

Analysis Date: 2025-07-29 17:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Cambrian Commercial Limited shows a stable financial position with significant net assets and shareholders’ funds predominantly comprising share premium and goodwill. However, the company’s liquidity position is weak, with negligible cash balances (£201) and a large portion of current assets tied up in debtors, all owed by group undertakings. The company has a small workforce (average 2 employees) and operates in a niche business support service sector. The lack of cash reserves and reliance on intercompany receivables pose short-term repayment risks. Approval is recommended subject to periodic review of cash flow and debtor recoverability, and confirmation of support from group entities.

2. Financial Strength
   The company’s balance sheet reflects strong equity backing (£2.17m net assets), largely due to intangible fixed assets (goodwill) of nearly £2m, amortised over 20 years. Share capital is minimal (£1,000), with most equity from a share premium account (£2.29m). Net current assets improved from £103k in 2022 to £185k in 2023, driven by an increase in debtors. Current liabilities remain steady at £228k. The company’s net asset position is robust, but goodwill is a non-liquid asset and subject to impairment risk.

3. Cash Flow Assessment
   Liquidity is a concern given the nominal cash on hand (£201) and significant reliance on amounts owed by group undertakings (£414k). Current liabilities are fully covered by current assets, but working capital quality depends on the collectability of intercompany debtors. There is no indication of external borrowing or overdraft facilities. The company’s ability to meet immediate cash obligations independently is limited, necessitating support from related parties or improved cash conversion cycles.

4. Monitoring Points

• Monitor debtor aging and collectability, particularly intercompany balances.
• Review cash flow statements if available to assess operating cash generation and timing of receipts/payments.
• Watch for any impairment indicators on goodwill due to its material balance on the asset side.
• Keep track of changes in current liabilities and liquidity ratios.
• Observe any changes in group support arrangements or director appointments that could affect governance or credit risk.