REPROCOPY PRINTING LIMITED

Executive Summary

Reprocopy Printing Limited exhibits stable financial fundamentals with positive net assets and profitability but has experienced a reduction in cash and retained earnings due to dividends. The company’s liquidity and related party exposures require ongoing monitoring. Credit is recommended on a conditional basis, ensuring the business maintains sufficient working capital and controls debtor collections effectively.

REPROCOPY PRINTING LIMITED - Analysis Report

Company Number: 13554580

Analysis Date: 2025-07-19 12:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Reprocopy Printing Limited is an active private limited company operating in the niche printing sector (SIC 18129). It has been trading since August 2021 and shows positive net assets and shareholder funds, indicating some financial stability. However, the company's net current assets decreased from £69k (2023) to £61k (2024), and cash balances declined from £21.5k to £13.3k in the same period. There is also a related party loan of £23,383 to another company controlled by the director, which adds some risk. The company is profitable but paid dividends of £21,000 in the latest year, reducing retained earnings. Given the modest scale of operations, limited asset base, and some concentration risk, credit should be extended with conditions such as monitoring of liquidity and related party exposures.

2. Financial Strength:
   The balance sheet shows net assets of £70,768 as at 31 March 2024, down from £81,622 the prior year, mainly due to dividend distribution and reduced retained earnings. Fixed assets are modest at £12,057, primarily plant, machinery, and equipment. Current assets (£83,318) exceed current liabilities (£22,316) by a comfortable margin, indicating positive working capital. However, there is a decline in trade debtors from £71,603 to £35,463, possibly reflecting lower sales or tighter credit control. The shareholder funds consist almost entirely of retained earnings, with nominal share capital of £1. No long-term liabilities are reported, which supports financial stability but also indicates limited leverage capacity.

3. Cash Flow Assessment:
   Cash at bank decreased significantly to £13,278 from £21,507, which may pressure liquidity if not managed carefully. The company maintains positive net current assets but with a lower cash buffer than before. The debtor book remains substantial (£61,045), though reduced, which poses a risk if collection is delayed. The presence of a director-related loan within debtors may also affect cash availability. The company’s ability to generate positive operating cash flow is implied by retained profits but dividend payments have reduced internal cash reserves. Overall liquidity is adequate but should be monitored closely to ensure timely debt servicing and operational funding.

4. Monitoring Points:

• Liquidity levels and cash flow, particularly given declining cash balances.
• Collection of trade and related party debtors to maintain working capital.
• Dividend policy versus retained earnings to avoid over-distribution.
• Any increase in creditor balances or overdue liabilities.
• Continued profitability and turnover trends to ensure sustainable cash generation.
• Director conduct and related party transactions to mitigate governance risks.