CLEGG GROUP LIMITED
Company number 03684875 · 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: CLEGG GROUP LIMITED
1. Credit Opinion: CONDITIONAL
Reasoning: This entity has undergone a dramatic structural reorganisation, transitioning from a £110M+ turnover construction business to what is effectively a shell holding company with £18.5K in total assets. While the company remains active with no adverse filings, the standalone entity possesses negligible capacity to service debt obligations. Any credit facility would require comprehensive group-level guarantees from D E Clegg Holdings Limited and satisfactory due diligence on the wider group's financial position. Without such support structures, this would be a DECLINE.
2. Financial Strength
Severe deterioration in balance sheet substance:
| Metric | 2020 | 2022 | 2024 |
|---|---|---|---|
| Total Assets | £17.5M | £22.0M | £18.5K |
| Net Assets | £339K | £349K | £15.1K |
| Shareholders' Funds | £903K | £14.7M | £15.1K |
| Cash | £112.8K | £11.2K | £6.0K |
The balance sheet has been effectively hollowed out between 2022 and 2024. Total assets declined by 99.9%, and shareholders' funds fell from £14.7M to £15.1K. This pattern is consistent with a deliberate group reorganisation—likely a distribution of reserves or transfer of trading operations to a subsidiary—rather than trading losses. The previous names (Clegg Construction Limited, D E Clegg Limited) and website description referencing "food construction projects" confirm this was historically an operating business.
The current net asset position of £15.1K provides virtually no buffer against losses. The share capital of £50K exceeds net assets, indicating accumulated deficits have eroded the equity base.
Assessment: Weak — The standalone entity is balance-sheet insolvent on a going-concern basis without group support.
3. Cash Flow Assessment
Critically constrained liquidity:
- Cash position of £6.0K (2024) represents a slight improvement from £3.6K (2023) but remains negligible
- Working capital (net current assets) cannot be meaningfully assessed from available data, but given total assets of only £18.5K, headroom is minimal
- No turnover figures are disclosed for 2021-2024, suggesting the company may have ceased trading operations or fallen below reporting thresholds
- The 2020 turnover of £110.5M confirms this was previously a substantial operating entity
The dramatic reduction in cash from £112.8K (2020) to current levels, alongside the asset depletion, suggests cash-generating operations have been transferred elsewhere. The entity now appears to function purely as a holding vehicle within the group structure.
Assessment: Inadequate — Standalone cash generation capacity is non-existent; the entity is entirely dependent on group funding.
4. Monitoring Points
| Metric | Current Status | Risk Level | Action Required |
|---|---|---|---|
| Group structure | PSC: D E Clegg Holdings Limited (>75% shares) | High | Obtain and review parent company financials; map full group structure |
| Intercompany balances | Unknown | High | Determine nature of any intercompany receivables/payables — these may represent the only meaningful asset |
| Trading status | Appears non-trading | High | Confirm whether company remains operational or is dormant shell; verify purpose within group |
| Asset transfers | £22M to £18.5K decline | Critical | Obtain explanation for 2022-2023 reorganisation; review board minutes; assess whether transactions were at arm's length |
| Filing compliance | Accounts up to date; next due 30/09/2026 | Low | Continue monitoring; no overdue filings currently |
| Director changes | Three current directors; no disqualifications | Low | Monitor for resignations which could signal further restructuring |
| Group guarantees | Not in place | Critical | Any facility must be supported by parent guarantee and/or cross-company guarantees |
| Related party exposures | Unknown extent | High | Full related-party analysis required given group structure |
Additional Considerations
Positive factors: - Long-established entity (incorporated 1998) - Active status with no insolvency proceedings - Filing compliance maintained - No director disqualifications identified - Appears to be part of a broader group structure that may retain financial strength
Negative factors: - Standalone entity has been reduced to a shell with negligible assets - No visible revenue stream - Cash position insufficient to service any meaningful debt - Dramatic and unexplained balance sheet reduction requires further investigation - Website suggests active trading focus ("food construction projects") which appears inconsistent with filed financials — possible mismatch between trading entity and holding entity
Recommendation: Any credit exposure should be assessed at the group level, with D E Clegg Holdings Limited as the primary credit risk. Standalone lending to Clegg Group Limited is not recommended without comprehensive group guarantees and satisfactory review of the parent and trading subsidiaries' financial positions.