Credit Analysis: ELY MASONIC HALL LIMITED

1. Credit Opinion: APPROVE

This entity presents a low credit risk profile. Ely Masonic Hall Limited is a well-established (42+ years) membership organization with a robust balance sheet characterized by substantial property assets and near-zero liabilities. The company has demonstrated consistent long-term asset growth and conservative financial management. The recent modest decline in net assets is not material enough to warrant concern, and the organization's debt-free status means any credit facility would sit in a senior position with strong asset backing.

2. Financial Strength

Balance Sheet Summary (FY2025): - Fixed Assets: £177,321 (predominantly the Masonic Hall property) - Current Assets: £99,579 (likely cash/investment holdings) - Total Liabilities: £220 (creditors due within one year only) - Net Assets: £276,680 - Gearing: Effectively 0% (liabilities represent 0.08% of total assets)

Long-term Trajectory: Net assets have grown from £215,870 (2016) to £276,680 (2025), representing approximately 28% growth over nine years. This demonstrates steady capital accumulation through retained surpluses.

Recent Trend: A slight softening is observable: - 2023: £283,998 - 2024: £278,807 - 2025: £276,680

This represents a £7,318 decline over two years (2.6%), likely attributable to operating deficits or asset revaluation adjustments. This is not alarming given the scale of the balance sheet.

Key Strength: The liability position is virtually nil. The company carries no long-term debt, no provisions, and minimal trade creditors. This provides exceptional financial flexibility and means any new credit facility would have clear priority on assets.

3. Cash Flow Assessment

Liquidity Position: - Net current assets: £99,359 - Current ratio: £99,579 ÷ £220 = 452:1

This is an exceptionally strong liquidity position. The organization holds approximately £99,579 in current assets against only £220 in current liabilities.

Working Capital Considerations: As a membership organization with zero employees and minimal trade creditors, working capital requirements are negligible. The organization appears to operate on a cash basis with subscriptions/income received in advance of expenditure.

Cash Generation: The absence of a P&L account in micro-entity filings limits visibility on trading performance. However, the consistent growth in net assets over the longer term confirms the entity generates sufficient income to cover operating costs and build reserves. The recent modest decline suggests income may now be marginally below expenditure, but cash reserves remain substantial.

4. Monitoring Points

Specific Monitoring Recommendations:

1. Operating Surplus/Deficit: Request management accounts to understand whether the recent net asset decline reflects trading deficits or one-off adjustments. As a micro-entity, no income statement is filed, creating limited visibility on operational performance.

2. Property Maintenance Capex: With £177k in fixed assets (primarily property), monitor whether adequate maintenance expenditure is being sustained. Deferred maintenance could erode asset values and create future liabilities.

3. Membership Income Sustainability: The business model depends on membership subscriptions and hall lettings. Any significant decline in membership could impact income streams and cash generation.

4. Governance Changes: The board has seen recent turnover (three resignations in 2026). While normal for membership organizations, ensure continuity of financial oversight.

5. PSC Transparency: No persons with significant control are identified beyond a generic statement. For a guarantee company, this is expected but should be noted for KYC purposes.