Company Number: 13263812

Analysis Date: 2025-07-20 18:15 UTC

Credit Opinion: CONDITIONAL APPROVAL

Supramax Holdco Limited is an active private limited company incorporated in 2021, operating in the sea and coastal freight water transport sector (SIC 50200). The company reported a substantial increase in profit for the year ended 31 December 2023 (£6,975,076) compared to 2022 (£771,512), primarily driven by income from shares in group undertakings. However, the balance sheet reveals a significant reduction in fixed asset investments from $6.8M to $3.2M, and the company currently shows net current liabilities of £31,308, indicating a working capital deficit. The share capital is nominal (£100), and the company has negative retained earnings (£31,412), although it maintains a positive net asset position (£3.2M) supported by contributed surplus.

Financial Strength:

• The company has a solid net asset base but has seen a sharp decline in investments, which might reflect disposals or impairments.
• Current liabilities exceed current assets, creating a negative working capital position, which could pressure short-term liquidity.
• Retained earnings are negative, suggesting accumulated losses or distributions exceeding profits, despite the recent profitable year.
• The balance sheet shows reliance on contributed surplus, which is non-liquid equity and may not be readily available to cover short-term obligations.

Cash Flow Assessment:

• Minimal cash at bank (£12,882) relative to short-term creditors (£44,988) indicates tight liquidity.
• The company’s cash flow from operations is not detailed but the working capital deficit and low cash balances suggest potential challenges in meeting immediate liabilities without additional financing or cash inflows.
• The large income from group undertakings may represent dividend receipts or intragroup transactions, which alone do not guarantee operating cash inflows.

Monitoring Points:

• Monitor the company's ability to restore positive working capital and improve cash reserves.
• Track any further changes in investment valuations or disposals impacting asset base.
• Review the nature and sustainability of income from shares in group undertakings to ensure ongoing profitability.
• Watch for changes in directors or management that could affect governance and financial stewardship.
• Assess any forthcoming filings or financial reports for signs of financial distress or liquidity constraints.

Overall, while Supramax Holdco Limited demonstrates profitability and a positive net asset position, the negative working capital and limited cash resources present liquidity risks. Approval for credit facilities should be conditional on obtaining clarity on short-term cash flow management and confirmation of ongoing financial support or operational cash generation.