Credit Assessment: CPPGROUP LIMITED

1. Credit Opinion: CONDITIONAL

Rationale: The credit decision must be conditional due to insufficient financial data to conduct a full assessment. While the company presents as an established, active entity with institutional backing, several factors require clarification before an approval can be recommended:

• Minimal disclosed share capital of £24 raises immediate questions about capital adequacy, though this may reflect group structure rather than standalone position
• Recent corporate restructuring — the company re-registered from PLC to Limited in July 2026, indicating a transition from public to private status, which typically follows a takeover, delisting, or strategic reorganisation. The implications for creditor position need understanding.
• Recent director departures — the COO and an Accountant both resigned on the same date (30 September 2025), which warrants explanation regarding continuity of management and financial oversight
• No filed financial statements are available for review, making payment capability assessment impossible at this stage

Recommendation: Approve only with conditions: (a) obtain and review the latest group accounts; (b) seek explanation for the PLC-to-Limited transition; (c) understand management departures; (d) obtain parent company guarantee if this entity is a subsidiary within the group structure.

2. Financial Strength

Limited assessment possible — no balance sheet data is available for review.

Observations: - The company files as a Group entity, suggesting it has subsidiaries and is likely the holding company within the CPP Group structure - Stated share capital of £24 is nominal and typical of a holding company that may operate with intercompany balances rather than external equity - The PSC register shows Phoenix Asset Management Partners Limited holding 25-50% and Mr Hamish Macgregor Ogston holding 25-50%, indicating concentrated ownership by an institutional investor and a significant individual shareholder - The recent transition from PLC to Limited suggests the company was previously listed and has been taken private — this often involves a acquisition by existing major shareholders, which appears consistent with the PSC structure

Concern: Without sight of net assets, retained profits, or group balance sheet, capital adequacy cannot be verified. A holding company with minimal share capital may have limited standalone capacity to service debt.

3. Cash Flow Assessment

No cash flow data available for assessment.

Structural observations: - As a head office entity (SIC 70100), cash flow is likely derived from intercompany management charges, dividends from subsidiaries, or group financing arrangements rather than independent trading revenue - This creates dependency risk — the company's ability to service debt obligations depends on the performance and cash generation of its operating subsidiaries - The insurance and assistance products described on the website suggest the operating subsidiaries are in financial services, which are typically cash-generative but subject to regulatory capital requirements that may constrain upstream cash flow - Working capital requirements for a head office function are typically modest, but this needs verification

Key unknown: The extent to which cash is trapped in regulated insurance subsidiaries versus available for debt service at the holding company level.

4. Monitoring Points