Company Number: 12769008

Analysis Date: 2025-07-29 18:02 UTC

1. Risk Rating: MEDIUM
   C&I Commercials Limited shows a solid asset base and positive net assets, but significant negative working capital and increasing borrowings introduce moderate solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Current Assets: The company has consistently reported net current liabilities over the past years (£-418k in 2024), indicating potential short-term liquidity stress and difficulty meeting current obligations without relying on longer-term financing or asset sales.
• Increasing Borrowings and Hire Purchase Obligations: Total borrowings rose notably from £680k in 2023 to over £911k in 2024, with a substantial portion under hire purchase contracts. This elevates financial leverage and fixed obligations, potentially pressuring cash flows.
• Low Cash Reserves: Cash at bank dropped significantly from £44.5k in 2023 to £15.6k in 2024, which may limit the company’s ability to cover immediate expenses or absorb financial shocks.

3. Positive Indicators:

• Growing Net Assets and Fixed Assets: Net assets improved from £157k in 2023 to £241k in 2024, driven by substantial additions to tangible fixed assets (notably motor vehicles), suggesting investment in productive capacity.
• Stable Debtor Levels: Trade debtors remained steady around £170k, indicating consistent revenue generation and receivables management.
• No Overdue Filings and Compliance: The company is current with both accounts and confirmation statement filings, showing good regulatory compliance and governance.
• Majority Ownership and Control: A single controlling shareholder (Mrs. Mary Anne Poole) with full voting rights may facilitate decisive management and strategic direction.

4. Due Diligence Notes:

• Investigate the terms and maturity profile of hire purchase contracts and other borrowings to assess refinancing risk and interest burden.
• Review cash flow statements and projections to clarify how the company manages negative working capital and whether operational cash flow supports debt servicing.
• Assess the nature and liquidity of fixed assets, especially motor vehicles, to determine if they can be leveraged or sold to improve liquidity if needed.
• Confirm management’s strategy regarding working capital improvement and any plans to increase cash reserves or reduce short-term liabilities.
• Evaluate customer concentration and credit risk relating to trade debtors to ensure receivables quality.
• Given the company is relatively young (incorporated 2020), analyze growth trajectory and sustainability of operations in the freight transport sector.