CEDO LIMITED

Risk Rating: MEDIUM Justification: While the company demonstrates significant operational longevity and strong regulatory compliance, the opaque group ownership structure and the absence of specific financial metrics in the provided data prevent a definitive assessment of solvency and liquidity. The overlapping Persons with Significant Control (PSC) designations and the inherent risks associated with the plastics manufacturing sector necessitate a cautious approach until further financial and structural details are verified.

Key Concerns: - Opaque Group Structure: The PSC register lists two corporate entities (Deco Acquisitions Ltd and Cedo Holdings Ltd) as owning more than 75% of the company's shares, alongside a general "Persons with significant control statement." Having two entities holding >75% each is structurally impossible unless there is a layered ownership structure (e.g., one owns the other). This overlap obscures the ultimate beneficial ownership and could indicate complex inter-company financial dependencies that may impact solvency. - Financial Data Limitations: The provided dataset lacks specific current assets, current liabilities, and net assets figures. Without these, it is impossible to calculate liquidity ratios or assess working capital health. - Sector-Specific Pressures: Operating under SIC code 22290 (Manufacture of other plastic products), the company faces inherent environmental, regulatory, and supply chain risks. Increasing regulatory pressures regarding plastics and raw material volatility can rapidly alter a manufacturer's operational stability and margins.

Positive Indicators: - Corporate Longevity: Incorporated in 1968, the company has survived multiple economic cycles, suggesting strong underlying operational stability and a proven business model. - Regulatory Compliance: The company is actively filing both its accounts and confirmation statements on time, with no overdue flags. Furthermore, it files "Full" accounts rather than opting for micro-entity or dormant exemptions, which suggests a willingness to provide transparency to stakeholders. - Substantial Capital Base: A stated share capital of £3,000,001 indicates a well-capitalized entity with a significant equity foundation, which is generally a strong buffer against solvency risks. - Stable Corporate Identity: The company has not undergone a name change since 2001, suggesting stable branding and strategic direction over the last two decades.

Due Diligence Notes: - Unravel the Ownership Chain: Investigate the relationship between Deco Acquisitions Ltd and Cedo Holdings Ltd. Identify the ultimate parent company and review the parent's consolidated financial statements to understand group-wide liabilities and cash flows. - Detailed Financial Review: Retrieve the latest full accounts (made up to December 31, 2024) from Companies House to scrutinize the balance sheet. Pay particular attention to current ratios, net assets, and any inter-company receivables/payables that might indicate cash extraction or reliance on group funding. - Directorship Assessment: Evaluate the broader board structure. The data currently lists only one director (Thierry Navarre). Assess whether this single officer creates a key-person dependency risk or if there is a broader management team not captured in the current data extract. - Environmental Compliance: Given the plastics manufacturing classification, review the directors' report within the full accounts for environmental provisions, ESG compliance, and any contingent liabilities related to environmental regulations or waste disposal.