Company Number: 13009202

Analysis Date: 2025-07-20 18:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ducamel Ltd is an active private limited company operating in real estate management and investment. The company’s net assets are positive but marginal at £6,433 as of November 2023, with a significant long-term creditor balance of £276,960. This creditor amount likely represents a loan or mortgage secured against the property assets. The company has maintained stable fixed assets (£237,175) and modest current assets (£125,002) with reasonable cash reserves (£117,223). However, its turnover is very low (£25,000 in 2022) relative to its liabilities, indicating limited operating income generation. The directors have not opted for audit, which limits financial transparency. Given the substantial creditor exposure and limited turnover, credit should be extended cautiously and preferably secured or with covenants linked to cash flow and asset value.

2. Financial Strength:
   The balance sheet shows a strong fixed asset base in investment property valued at £237,175, which appears to be held at cost and considered fair value by management. Current assets exceed current liabilities by £46,218, reflecting positive working capital, supported by a strong cash position. However, the company carries a large non-current creditor (£276,960), creating leverage and risk. Net assets have grown from £3,340 in 2022 to £6,433 in 2023, indicating some retained earnings accumulation (£6,335 profit and loss reserve). The minimal share capital (£98) reflects a small equity base. Overall, the company is asset-backed but highly leveraged.

3. Cash Flow Assessment:
   Cash balances increased from £95,093 to £117,223 year-on-year, which is positive for liquidity. Debtor balances are low and manageable, and trade creditors are minimal, minimizing short-term liquidity risks. Interest payable is significant (£58,162), indicating high financing costs that could pressure cash flows. The director’s loan account (£18,350) suggests some internal financing support. Despite low turnover, the company appears able to meet short-term obligations currently but depends heavily on managing creditor terms and cash flows carefully.

4. Monitoring Points:

• Monitor turnover and operating income growth to ensure debt servicing capacity improves.
• Track cash flow closely, especially interest payments and director loan movements.
• Review loan/mortgage creditor terms and ensure no covenant breaches.
• Watch net asset value and periodic revaluation of investment properties to confirm collateral value.
• Ensure timely filing of accounts and consider audit or additional transparency if credit limits increase.
• Monitor any director changes or ownership concentration risks given PSC holds 75-100% shares.