CompaniesInTheUK

MEMBERSHIP PLANS LIMITED

Company number 06322047 ·

Active

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 Assessment: MEMBERSHIP PLANS LIMITED

1. Credit Opinion: CONDITIONAL

Reasoning: The company presents a mixed credit profile. While the balance sheet is cash-rich and liabilities are declining year-on-year, there is a concerning trajectory of shrinking total assets and declining net worth. The company's status as a subsidiary of Lloyd & Whyte Group Ltd (owning >75%) provides implicit group support, but standalone financial strength is modest with net assets of only £34,002 as at July 2020. Any credit facility should be conditional upon parent company guarantee and ongoing monitoring of the declining asset trend.

Key Concern: The significant contraction from £304,164 total assets (2018) to £124,013 (2020) represents a 59% decline over two years, which warrants explanation.

2. Financial Strength

Balance Sheet Summary (Year Ending July):

Metric 2020 2019 2018 2017 2016
Total Assets £124,013 £181,799 £304,164 £236,387 £178,763
Total Liabilities (£89,066) (£151,165) (£280,375) (£188,099) (£123,482)
Net Assets £34,002 £30,634 £23,789 £48,288 £55,281
Shareholders' Funds £32,002 £28,634 £23,789 £50,038 £49,265

Analysis:

  • Equity erosion: Net assets declined from £55,281 (2016) to £34,002 (2020), a 38.5% reduction over four years. The 2018 year shows a particularly sharp drop to £23,789 before partial recovery.
  • Minimal share capital: Only £2,000 in issued share capital, indicating the business has not been capitalised through equity injections.
  • Asset composition: The balance sheet is overwhelmingly cash-dominated (£114,111 of £124,013 total assets in 2020 = 92%). This suggests either a holding company function or a business with minimal operating asset requirements.
  • Liability reduction: Total liabilities have decreased from £280,375 (2018) to £89,066 (2020), which is positive and suggests active deleveraging.
  • Gearing: Based on 2020 figures, debt-to-equity is approximately 2.6:1, which is elevated but improving.

Concern: The pattern of declining assets alongside declining liabilities suggests the business may be running down rather than growing.

3. Cash Flow Assessment

Liquidity Position:

Metric 2020 2019 2018
Cash £114,111 £177,400 £299,097
Cash as % of Total Assets 92% 97.6% 98.3%

Analysis:

  • Strong cash position: Current cash of £114,111 provides substantial liquidity headroom against liabilities of £89,066. The current ratio (assuming most liabilities are current) appears adequate at approximately 1.4:1.
  • Cash burn trajectory: Cash has declined by £185,000 over two years (from £299,097 to £114,111), averaging approximately £92,500 per year. At this rate, cash would be depleted within 1-2 years without operational turnaround or parental support.
  • Working capital: Net current assets appear positive, but the lack of detailed current/non-current liability breakdown limits deeper analysis.
  • Cash generation unclear: Without P&L data, it is impossible to determine whether the cash decline reflects trading losses, dividend payments to the parent, or asset reallocations within the group.

Group Context: As a subsidiary of Lloyd & Whyte Group Ltd, intragroup cash movements may explain the declining cash position. This requires clarification—whether cash is being upstreamed to the parent or consumed by operational losses.

4. Monitoring Points

  1. Obtain latest accounts: The most recent detailed financial data is July 2020. The company has changed its year-end to December, with accounts made up to 31 December 2025 now due by September 2027. Request management accounts for the intervening period.

  2. Parent company financials: Request Lloyd & Whyte Group Ltd accounts to assess group-level financial strength and any guarantee capacity.

  3. Cash trajectory: Monitor quarterly cash positions. If cash falls below £75,000, this would represent a material deterioration and trigger a review.

  4. Purpose of borrowing: Clarify the loan purpose. Given the cash-rich balance sheet, borrowing may indicate cash is restricted or earmarked for group purposes.

  5. Intragroup balances: Quantify amounts owed to/from group companies. These may be significant and affect true standalone liquidity.

  6. Name change rationale: The company changed from PRIVILEGE PLAN LIMITED to MEMBERSHIP PLANS LIMITED in March 2022. Understand whether this reflects a strategic pivot, rebranding, or business model change.

  7. Director disqualification checks: No adverse records identified for current directors (Paul Short, Stephen Astley, Matthew Pyke, David Moore, Richard Bailey).

  8. Filing compliance: Currently up to date with no overdue filings. Monitor for future delays which could signal governance concerns.

Perspective: Business Credit Analyst · Model: glm-5.1 · Generated 28 August 2026