MORPHY RICHARDS LIMITED

1. Risk Rating: LOW

The company is a dormant entity within the Glen Dimplex group structure, with current filing compliance and no indicators of financial distress. However, the dormant status limits meaningful financial assessment, and the operational risk profile is essentially transferred to the trading entities within the wider group.

2. Key Concerns:

• Dormant Status with Active Brand Presence: The SIC code (99999 - Dormant Company) indicates this legal entity is not actively trading, yet the Morphy Richards brand maintains an active consumer-facing website. This structural disconnect means any investment or credit assessment of this specific entity provides minimal insight into the actual trading performance of the brand. The economic substance resides elsewhere in the group.

• Recent Director Resignation: Martin Lawrence Naughton resigned on 21 January 2026. Given that Mr Naughton also holds PSC status with "significant influence or control" and is the founder of the Glen Dimplex Group, this resignation warrants scrutiny. It may reflect normal succession planning, but any change in control at this level could signal group restructuring.

• Limited Financial Transparency: No balance sheet data (current assets, current liabilities, net assets) has been provided in the available data. While accounts are filed as "Full" category rather than abbreviated, the absence of financial figures prevents assessment of solvency, liquidity, or capital adequacy for this specific entity.

3. Positive Indicators:

• Strong Corporate Lineage: The company is wholly owned and controlled by Glen Electric Limited (part of the Glen Dimplex Group), a substantial and established international appliance manufacturer. This provides implicit financial backing and brand stewardship.

• Filing Compliance: Accounts and confirmation statements are current and not overdue. The next accounts are not due until June 2027, indicating no regulatory compliance concerns.

• Long Corporate History: Incorporated in 1959, the entity has operated for over 65 years. The brand has persisted through multiple economic cycles and ownership structures, suggesting enduring commercial value.

• Stable Governance Structure: The board includes both Irish and British nationals with apparent connections to the parent group, and a serving Managing Director, indicating ongoing oversight despite dormant trading status.

4. Due Diligence Notes:

• Identify the Trading Entity: Determine which group company actually conducts the Morphy Richards trading operations. Revenue, margins, and operational risk will reside there, not in this dormant company.

• Verify PSC Register Accuracy: Martin Naughton remains listed as a PSC despite his director resignation. Confirm whether his PSC status is being updated and whether control is transitioning to Fergal John Naughton, who remains on the board.

• Obtain Latest Filed Accounts: Access the full accounts made up to 30 September 2025 from Companies House. Even dormant companies must file balance sheets, which will reveal any inter-company balances, assets held, or liabilities that could pose risk.

• Assess Group Structure: Map the Glen Dimplex group structure to understand inter-company relationships, guarantees, and where the key value and risk concentrations sit.

• Review Brand Licensing Arrangements: Determine whether this entity holds intellectual property or brand rights that are licensed to trading subsidiaries, as this would explain the dormant status while the brand remains active.