CLARKSON HYDE GLOBAL LIMITED
Company number 05329562 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: CLARKSON HYDE GLOBAL LIMITED
1. Credit Opinion: CONDITIONAL
Reasoning: This entity presents an unusual credit profile requiring careful structuring. While the balance sheet shows positive net assets and a reasonable cash position, the company is structured as a private company limited by guarantee with no share capital, operating as a non-profit international association of accountants. The material decline in net assets from £91,324 (2023) to £57,052 (2025) — a 37.5% erosion over two years — is a significant concern. The absence of an income and expenditure account (the company has elected to file without it) means revenue and profitability metrics are opaque. Any credit facility should be limited to modest amounts relative to the balance sheet, secured where possible, and subject to covenants addressing the declining net asset position.
2. Financial Strength
Balance Sheet Health: Moderately Weakening
| Metric | 2025 | 2024 | 2023 | Trend |
|---|---|---|---|---|
| Total Assets | £90,791 | £111,322 | £125,839 | Declining |
| Total Liabilities | £33,739 | £35,370 | £34,515 | Stable |
| Net Assets | £57,052 | £75,952 | £91,324 | Significant decline |
| Cash | £76,761 | £70,872 | £110,539 | Volatile |
Key Observations: - Asset quality is heavily cash-concentrated: £76,761 of £90,791 total assets (84.5%) is cash. While this provides liquidity, it indicates limited operational assets. - No fixed assets are reported, suggesting the entity operates on a cost-light, service-only basis with no property or equipment base. - Liabilities are modest at £33,739, consisting entirely of other creditors falling due within one year. No long-term debt exists. - Net asset deterioration of £34,272 over two years (from £91,324 to £57,052) signals sustained operating deficits that are eroding the members' funds. - Company limited by guarantee means there is no share capital; members' liability is limited to €1 each on winding up. This provides virtually no equity cushion for creditors in a distress scenario. - Accounts are prepared in Euros as the functional currency, creating foreign exchange translation risk on any GBP-denominated facility.
Debtors have declined sharply from €40,450 (2024) to €14,030 (2025), with trade debtors dropping from €19,500 to just €1,950. This may indicate improved collections, but more likely reflects declining membership dues or fee income from the international network.
3. Cash Flow Assessment
Liquidity Position: Adequate but Deteriorating
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Current Assets | £90,791 | £111,322 | £125,839 |
| Current Liabilities | £33,739 | £35,370 | £34,515 |
| Current Ratio | 2.69x | 3.15x | 3.65x |
| Net Current Assets | £57,052 | £75,952 | £91,324 |
| Cash as % of Current Assets | 84.5% | 63.7% | 87.9% |
Assessment:
- The current ratio of 2.69x is adequate and indicates the entity can meet its short-term obligations. However, the downward trajectory from 3.65x to 2.69x over two years is concerning.
- Cash covers current liabilities 2.3 times, providing reasonable short-term liquidity.
- Working capital has declined by 37.5% over two years, from £91,324 to £57,052. Without visibility on the income and expenditure account, we cannot determine whether this erosion is from operational deficits, currency translation effects, or asset write-downs.
- The entity has zero employees and appears to operate as an administrative shell for the international accountants' network, with operations likely managed by the related Clarkson Hyde practice.
- No debt service history is available — the entity carries no borrowings, meaning there is no track record of meeting regular debt obligations.
Cash Flow Concerns: - The sustained decline in net assets strongly implies the entity is generating operating losses (expenditure exceeds membership income/fees). - Without the P&L account, we cannot assess the magnitude of annual deficits or identify whether the trend is stabilizing or accelerating.
4. Monitoring Points
| Priority | Metric | Rationale |
|---|---|---|
| Critical | Net asset trend | A further significant decline could push the entity toward insolvency. Monitor for net assets falling below £40,000. |
| Critical | Filing of full P&L | Request full income and expenditure account to assess revenue adequacy and deficit trajectory. Current filing exemptions obscure credit-relevant information. |
| High | Cash balance trajectory | Cash has fallen from £110,539 (2023) to £76,761 (2025). If this rate continues, liquidity will become constrained within 3-4 years. |
| High | Trade and other debtors | The sharp decline in debtors may signal falling membership or reduced network activity. Request membership numbers and fee income data. |
| Medium | Euro/GBP exchange rate | As accounts are prepared in Euros, material currency movements could affect GBP-equivalent balance sheet strength and debt service capacity. |
| Medium | Related party transactions | Graham Speck (director and PSC) is also connected to the Clarkson Hyde accounting practice. Understand the nature and quantum of inter-entity transactions. |
| Medium | Creditor composition | "Other creditors" of £33,739 are unspecified. Clarify whether these include related party balances or deferred membership income. |
| Low | Confirmation statement filing | Currently up to date, but monitor for any overdue filings which could signal governance concerns. |
Recommended Covenant Structure (if facility approved): - Minimum net assets of £40,000 - Maximum annual decline in net assets of £10,000 - Cash balance not to fall below £30,000 - Timely filing of accounts and confirmation statements
Additional Context:
The entity's previous name (CH International (Group) Limited, changed December 2019) and its description as an "international association of accountants" suggest it serves as a network or umbrella body for the Clarkson Hyde brand internationally. This is a common structure for professional services networks. The non-profit nature and guarantee structure are typical for such associations, but they do limit credit recovery options compared with conventional share-capital companies.
Director Peter Taylor Minchell is identified as an accountant, which provides some comfort regarding financial stewardship capability, though the declining net asset position raises questions about the adequacy of current management of the association's finances.