CS HOLDINGS (COLCHESTER) LTD

Executive Summary

CS HOLDINGS (COLCHESTER) LTD shows a strong financial position with increasing net assets and liquidity, supported by investments in subsidiaries. No immediate solvency or regulatory concerns are apparent. Attention should be given to subsidiary performance and intercompany balances to ensure ongoing operational and financial stability within the group structure.

CS HOLDINGS (COLCHESTER) LTD - Analysis Report

Company Number: 13130150

Analysis Date: 2025-07-20 11:03 UTC

1. Risk Rating: LOW
   CS HOLDINGS (COLCHESTER) LTD exhibits strong solvency and liquidity positions, with net assets increasing significantly over recent years, a substantial cash balance, and manageable current liabilities. There are no indications of overdue filings or regulatory issues.

2. Key Concerns:

• Reliance on Investments: The company's fixed assets are solely investments in subsidiary undertakings (£1,162,800), which may expose the company to risks if subsidiary performance deteriorates.
• No Employees: The company reported zero employees, potentially indicating limited operational activity directly within the holding company, which may affect operational stability depending on the group structure.
• Intercompany Debt: Creditors falling due after one year increased from £16,994 to £66,994, representing amounts owed to group undertakings, which warrants review for intra-group financing risks or dependencies.

3. Positive Indicators:

• Strong Cash Position: Cash increased from £307,177 to £515,838 between 2024 and 2025, indicating excellent liquidity to cover short-term obligations.
• Solid Net Current Assets: Net current assets improved substantially to £506,711 as of January 2025, reflecting good working capital management.
• Growing Equity Base: Shareholders’ funds increased from £18,613 in 2021 to £1,602,517 in 2025, demonstrating robust capitalisation and retained earnings growth.
• Compliance: Accounts and confirmation statement filings are up to date with no overdue returns, indicating good regulatory compliance.

4. Due Diligence Notes:

• Review the financial health and performance of subsidiary undertakings, particularly Simon Morris (Ipswich) Ltd, given the significant investment and related party transactions.
• Investigate the nature and terms of the intercompany creditor balances to assess any contingent liabilities or financing risks.
• Clarify the business model and operational activities given the absence of employees, to understand how management and operations are conducted.
• Confirm whether the exemption from audit is appropriate and whether the small company regime disclosures sufficiently capture risks.