CRANDELL LIMITED
Company number 01926802 · 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: CRANDELL LIMITED (01926802)
1. Credit Opinion: CONDITIONAL
Crandell Limited demonstrates consistent profitability and growing net assets, but presents a critical liquidity vulnerability that requires mitigation before unsecured credit can be extended. The near-zero cash position (£84) combined with extreme reliance on inter-company balances for working capital creates material uncertainty around debt servicing capacity. Any credit facility should be conditional upon satisfactory clarification of the group structure and the collectibility of the £133,421 owed by group undertakings.
Key concern: 90% of current assets comprise amounts owed by group undertakings, meaning the company's ability to pay external creditors depends entirely on cash flows from related parties.
2. Financial Strength
Balance Sheet Trend - Improving but structurally dependent:
| Metric | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Net Assets | £115,556 | £98,291 | £90,483 | £74,357 | £64,899 |
| Net Current Assets | £114,332 | £102,176 | £99,175 | £88,350 | £95,333 |
| Shareholders' Funds | £115,556 | £98,291 | £90,483 | £74,357 | £64,899 |
- Positive: Net assets have grown 76% over five years (from £64,899 to £115,556), indicating retained profitability
- Positive: P&L reserves increased by £17,265 in the latest year, confirming trading profitability
- Positive: Modest leverage with only £7,093 in total bank borrowings against £115,556 in equity
- Concern: Tangible assets are nearly fully depreciated (£2,224 carrying value on £217,864 historical cost), providing minimal asset backing
- Concern: The share capital structure (£400 share capital, £29,900 share premium, £25,000 capital redemption reserve) suggests historic restructuring that should be understood
Capital adequacy is superficially strong, but the quality of assets is poor — the balance sheet is dominated by an inter-company receivable rather than independent trading assets.
3. Cash Flow Assessment
This is the critical weakness in the credit profile.
Cash deterioration trajectory:
| Year | Cash | Year-on-Year Change |
|---|---|---|
| 2016 | £55,719 | — |
| 2017 | £41,513 | -25.5% |
| 2018 | £18,241 | -55.7% |
| 2019 | £7,303 | -59.9% |
| 2020 | £2,818 | -61.4% |
| 2021 | £55,726 | +1,876% (likely COVID support) |
| 2022 | £18,809 | -66.3% |
| 2023 | £6,895 | -63.3% |
| 2024 | £2,538 | -63.2% |
| 2025 | £84 | -96.7% |
The company has effectively no operating liquidity. The 2021 cash recovery likely reflects government support during COVID, which has now been fully consumed.
Working capital analysis (2025): - Current Assets: £159,846 - Current Liabilities: £45,514 - Current Ratio: 3.5x — appears healthy - However, strip out the inter-company balance (£133,421) and the picture transforms: - Adjusted Current Assets: £26,425 - Adjusted Current Ratio: 0.58x — below 1.0x, indicating working capital deficit
Debt servicing capacity: - Bank loans (current): £6,093 - Bank loans (non-current): £1,000 - Total bank debt: £7,093 - Cash to service this debt: £84 - The company is entirely dependent on group undertakings releasing funds to meet its obligations
Cash flow conclusion: The company cannot service any additional debt from its own resources. Debt service depends on related party cash transfers.
4. Monitoring Points
Immediate priorities for any credit decision:
| Risk Area | Metric | Current Status | Watch Threshold |
|---|---|---|---|
| Liquidity | Cash position | £84 (critical) | Below £5,000 requires explanation |
| Concentration | Inter-company receivable as % of current assets | 83.5% | Above 50% requires group guarantee |
| Collection | Inter-company receivable ageing | Not disclosed | Must obtain |
| Debt Service | Cash/Total bank debt | 0.01x | Below 0.25x is red flag |
| Tangible Security | Net tangible assets | £2,224 | Insufficient for secured lending |
Ongoing monitoring requirements:
-
Group structure clarification: Obtain full group structure chart showing relationship with Lucie Walsh Ltd (PSC) and all group undertakings. Understand why £133,421 is owed and repayment terms.
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Inter-company balance collectibility: Request confirmation that the group undertaking balance is recoverable and not effectively impaired. Obtain ageing analysis.
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Cash flow forecasting: Request 12-month cash flow projection demonstrating how the company will meet its obligations given the current cash position.
-
Group guarantee: If lending, require a parent company guarantee from Lucie Walsh Ltd or the ultimate holding entity, given the inter-dependency.
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Quarterly monitoring: Given the rapid cash deterioration, any facility should be subject to quarterly review of cash position and inter-company balances.
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Trade debtor verification: Confirm that the £11,522 trade debtor balance is genuine third-party income and not another related party balance.
Structural observations: - The company operates as an optician retailer (SIC 47782) but the balance sheet suggests it functions more as a group financing entity - Single director (Ms L R Walsh) with corporate PSC owning 75%+ — decision-making is concentrated - 40-year track record (incorporated 1985) provides some comfort regarding business longevity - Only 3 employees — this is a micro-operation with limited operational resilience