NORMIRE LTD

Executive Summary

NORMIRE LTD is a young but rapidly expanding wholesale food company with significant investment in fixed assets and a strong net asset base. While operational growth and compliance appear sound, the company’s liquidity position and long-term debt warrant closer scrutiny to assess cash flow adequacy and financing risk. Ownership concentration changes also suggest governance aspects to monitor closely.

NORMIRE LTD - Analysis Report

Company Number: 14006122

Analysis Date: 2025-07-29 19:24 UTC

1. Risk Rating: MEDIUM
   NORMIRE LTD shows a strong net asset position and significant growth in fixed assets and current assets within a short period since incorporation. However, the presence of long-term creditors (£675,000) and a relatively low cash balance compared to current assets suggests some potential liquidity constraints. The company is still relatively young (incorporated 2022), and while no overdue filings or compliance issues are noted, the rapid expansion and investment profile warrant caution.

2. Key Concerns:

• Long-term liabilities: The £675,000 creditors falling due after more than one year could indicate debt financing; the terms and repayment schedule should be scrutinized for refinancing risk or covenant compliance.
• Liquidity and cash flow: Despite strong current assets (£2.3m), cash is only £94,315, and debtors are reported as zero. The absence of receivables may indicate upfront payments or limited credit sales, but cash flow adequacy for operations and debt servicing needs verification.
• Ownership and control concentration: Recent changes in significant control with 75-100% shareholding shifting from Andrew Ruddiforth to Jaber Al Badri within the same year could raise governance questions, especially given the director turnover in early 2024.

3. Positive Indicators:

• Strong asset growth: Fixed assets nearly tripled from £958k to nearly £3m in the last year, suggesting investment in productive capacity aligned with business growth.
• Positive net current assets: The company maintains a strong working capital position (£2.3m net current assets), indicating operational liquidity above current liabilities.
• Compliance and governance: No overdue accounts or confirmation statements; filings are up to date. The company opted for abridged accounts under the small companies regime, which is consistent with its size.
• Employee growth: Increase in average employees from 9 to 22 indicates operational scaling.

4. Due Diligence Notes:

• Review detailed terms of the £675,000 long-term creditors and any associated financial covenants or repayment schedules.
• Investigate cash flow statements and operating cycle to confirm liquidity sufficiency, especially with zero debtors reported.
• Examine the nature and valuation basis of fixed investments, particularly the £2.3m investments in land and crop production facilities, for impairment risk or overstatement.
• Clarify ownership and control changes, including any related party transactions or governance implications.
• Analyze the business model and client payment terms given no receivables and relatively low cash balance.
• Confirm the scope and impact of the directors’ and shareholders’ changes on company strategy and risk profile.