M CUDDY GROUP LIMITED
Company number 00678543 · 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: M Cuddy Group Limited
1. Credit Opinion: DECLINE
This application must be declined. The company has been dissolved and therefore cannot enter into any credit facility or commercial agreement. A dissolved entity has no legal capacity to borrow, trade, or honour obligations. Any exposure to this entity would be irrecoverable.
Even setting aside the dissolution, the financial position would warrant a decline on its own merits. The company was technically insolvent throughout the period for which accounts are available, with net liabilities of approximately £88,000 and accumulated losses exceeding £141,000 in the P&L reserve.
2. Financial Strength: Critically Weak
Balance Sheet Summary (Year Ending 31 July 2014):
| Item | 2014 | 2013 |
|---|---|---|
| Debtors (Current Assets) | £9,632 | £9,882 |
| Creditors due within 1 year | (£2,846) | (£2,846) |
| Net Current Assets | £6,786 | £7,036 |
| Creditors due after 1 year | (£94,689) | (£94,689) |
| Net Liabilities | (£87,903) | (£87,653) |
Key observations: - Insolvent position: Shareholders' funds were negative (£87,903), meaning liabilities exceeded assets by a significant margin - No tangible asset base: All fixed assets (£71,028 cost) were fully depreciated with zero net book value — the company had no asset collateral - Accumulated losses deepening: The P&L reserve deteriorated from (£141,267) to (£141,517), indicating ongoing trading losses - Long-term creditor burden: £94,689 in creditors due after more than one year with no corresponding asset coverage - Minimal working capital: Only £6,786 in net current assets against substantial long-term obligations
The balance sheet shows a company that was technically insolvent and unable to meet its obligations from its own resources.
3. Cash Flow Assessment: Inadequate
Liquidity Position: - Current assets of only £9,632 (solely debtors — no cash or investment holdings disclosed) - Current liabilities of £2,846, giving a current ratio of approximately 3.4:1 - While the current ratio appears adequate, the figure is misleading — the £9,632 in debtors must be assessed against the much larger long-term creditor position of £94,689
Working Capital Concerns: - No cash balances reported on the balance sheet - Debtors remained static year-over-year (£9,882 to £9,632), suggesting minimal trading activity - The company appeared to be in a near-dormant state with negligible revenue generation
Debt Service Capacity: Non-existent. With no visible income stream, no cash reserves, and fully depreciated assets, the company had no means to service either existing or new debt obligations.
4. Monitoring Points
Should any related entity or successor business approach the bank for facilities, the following should be investigated:
| Risk Area | Consideration |
|---|---|
| Related entities | The Cuddy family (Michael and John) hold significant control — check whether assets or liabilities were transferred to other group companies prior to dissolution |
| Director track record | Verify whether Trevor John Davies (current officer) and the Cuddy family have directorships in other active entities with similar insolvency patterns |
| Creditor settlement | The £94,689 in long-term creditors remains unaddressed — determine whether these were written off, settled, or transferred |
| Group structure | Company was classified as "Group" accounts — map the wider group structure to understand inter-company exposures |
| Phoenix risk | Monitor for new entities with similar names, addresses, or directors that may represent a continuation of the business without legacy liabilities |
Summary
This company is dissolved and has no capacity to enter into credit arrangements. The financial history reveals a deeply insolvent entity with negative net assets of approximately £88,000, accumulated losses exceeding £141,000, no tangible asset base, and minimal trading activity. Any credit exposure would be unrecoverable. Attention should instead focus on monitoring related parties and potential phoenix activity through the Cuddy family's other business interests.