CPS MANUFACTURING CO LLP
Company number OC382587 · 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.
Risk Analysis: CPS Manufacturing Co LLP
1. Risk Rating: HIGH
The dramatic disappearance of approximately £2.58M in total assets and £1.56M in liabilities between FY2022 and FY2023, with the entity subsequently filing as dormant with nil balances, presents significant concern. The lack of transparency around what transpired with these substantial assets, combined with a family-controlled structure of eight designated members, raises material questions about where value has moved and whether this entity has been used as a vehicle for asset transfers.
2. Key Concerns
Concern 1: Unexplained Vanishing Asset Base The financial history reveals a substantial business with £2.58M in total assets as at 31 March 2022, growing steadily from £608K in 2017. By 31 March 2023, both assets and liabilities reported as £0. No explanation is provided in the dormant accounts for how approximately £1.02M in net assets (the calculated net position in FY2022) was eliminated. This warrants urgent investigation into whether assets were transferred to connected parties, distributed to members, or written off.
Concern 2: Family Concentration and Control All eight designated members share the surname Hughes, and four individuals are recorded as Persons with Significant Control. This level of family concentration creates inherent risks around related-party transactions, potential conflicts of interest, and the possibility that asset movements may benefit insiders at the expense of external stakeholders. One member (Jean Lesley Hughes) has "Nationality Unknown" recorded, which is an administrative gap.
Concern 3: Operational Cessation Without Disclosure The entity has had zero employees throughout the period reviewed, yet maintained over £2.5M in assets until 2022. The transition to dormant status with no employees suggests the underlying business activity ceased, but there is no strategic report, directors' report, or narrative explaining the cessation. The latest accounts confirm "No description of principal activity" and NIL employees for both 2024 and 2025.
3. Positive Indicators
- Filing Compliance: Accounts and confirmation statements are current with no overdue filings. The FY2025 accounts were approved on 2 December 2025 and filed within statutory deadlines.
- No Insolvency Proceedings: The company is not in liquidation, administration, or receivership. Status remains Active.
- Historical Solvency: Prior to 2023, the entity maintained positive net assets, growing from approximately £206K (2016) to over £1M (2022), suggesting the business was previously viable.
- Audit Exemption Properly Claimed: The dormant accounts correctly reference Section 480 exemption and the small LLPs regime.
4. Due Diligence Notes
| Item | Investigation Required |
|---|---|
| Asset Disposition | Obtain FY2023 accounts (the transition year) to understand how £2.58M in assets and £1.56M in liabilities were eliminated. This is the single most critical item. |
| Related Entity Transfers | Search for connected entities—particularly other Hughes family companies—that may have received assets. Check Companies House for director overlaps with other entities at the registered address (Brunel House, Harworth). |
| Member Loan Accounts | The FY2022 liabilities of £1.56M likely included significant member loans. Determine whether these were repaid, forgiven, or transferred. |
| Property Records | Given the asset values involved, investigate whether the LLP held freehold or leasehold property at Brunel Close, Harworth, and what happened to it. Land Registry searches recommended. |
| Trading Entity Identification | Identify whether the manufacturing operations continued under a different legal entity. The website (cpsmanufacturingco.co.uk) should be checked for current activity and any references to corporate restructuring. |
| FY2020 Negative Net Assets | Note that FY2020 showed net liabilities of approximately £27K (assets £1.44M vs liabilities £1.47M). Understand how this was resolved by FY2022 and whether any member capital injections or debt restructurings occurred. |
| Jean Lesley Hughes | Clarify the nationality status of this designated member, as "Unknown" is an administrative deficiency that should be corrected in the confirmation statement. |