CP (PETERHEAD) LIMITED

Executive Summary

CP (Peterhead) Limited operates within a residual and heterogeneous segment of the UK service sector, characterized by bespoke or niche activities. The company’s financial profile reveals significant liquidity strains and negative equity, diverging from typical industry norms that favor positive working capital and stable shareholder funds. Its reliance on investment property assets and related-party financing places it in a vulnerable competitive position amid challenging sector dynamics, marking it as a niche player with constrained operational flexibility.

CP (PETERHEAD) LIMITED - Analysis Report

Company Number: SC655329

Analysis Date: 2025-07-20 13:12 UTC

1. Industry Classification
   CP (Peterhead) Limited is classified under SIC code 96090, which corresponds to "Other service activities not elsewhere classified." This sector is a residual category within the UK services industry, typically encompassing niche or miscellaneous service providers that do not fit neatly into standard classifications. The sector often includes small-scale specialist services, with limited standardised benchmarks due to its heterogeneity. Businesses in this classification can range from consultancy, property-related services, to other bespoke service offerings.

2. Relative Performance
   Financially, CP (Peterhead) Limited shows a challenging position relative to typical service sector norms. The company reports significant net current liabilities of £528,405 as of the 2024 fiscal year end, and shareholders’ funds are negative at approximately £2,826. This level of negative working capital and equity is uncommon for a stable service company, where positive net assets and working capital are generally expected for operational viability. The company’s cash reserves are modest (£6,478), and debtors have sharply decreased from £85,844 in 2023 to £1,968 in 2024, indicating either a substantial reduction in receivables or a change in business scale or credit policy. The dominance of current liabilities (over £536k) suggests a heavy reliance on short-term creditor financing or related-party funding, which is risky in service sectors that usually maintain balanced current asset-to-liability ratios. For comparison, well-performing service firms often maintain at least a positive net current asset position and stable equity to fund operations and growth.

3. Sector Trends Impact
   The broad "Other service activities" sector is influenced by macroeconomic and regulatory trends affecting small and medium enterprises (SMEs) in the UK. Key drivers include:

• Post-pandemic economic recovery and shifting client demand patterns, with some service niches experiencing contraction or irregular cash flows.
• Inflationary pressures increasing operating costs and affecting client payment behaviours, potentially explaining the reduction in debtor balances.
• Regulatory scrutiny and financial transparency demands impacting smaller companies’ access to finance.
• Property market fluctuations can affect companies holding investment property; CP (Peterhead) Limited’s fixed assets are dominated by investment property valued at £525,679, which may expose it to real estate market volatility.
  These trends collectively contribute to financial pressure on small service providers, especially those with capital-intensive assets but limited operational cash flow.

4. Competitive Positioning
   CP (Peterhead) Limited operates as a micro-to-small private limited company with no employees, indicating a niche or closely-held operation rather than a broad market participant. Its negative equity and working capital deficits suggest a weak competitive position relative to typical industry players, who maintain healthier balance sheets to support service delivery and client confidence. The presence of investment property as a major asset distinguishes it somewhat from pure service firms and suggests a hybrid model possibly reliant on rental income or asset appreciation. However, the substantial short-term liabilities owed to "participating interests" hint at related-party financing arrangements rather than conventional external debt, which may limit financial flexibility and market competitiveness. Without a diversified asset base or operational scale, CP (Peterhead) is likely a niche or follower in its segment, vulnerable to liquidity and solvency risks compared to sector peers with stronger capitalisation and cash flows.