UPM CONVEYORS HOLDINGS LIMITED

Executive Summary

UPM Conveyors Holdings Limited presents a stable net asset position supported by significant investments in subsidiaries but faces liquidity constraints indicated by negative net current assets. The company remains compliant with regulatory filings and operates on a going concern basis dependent on group support. Investors should focus due diligence on subsidiary performance and related party obligations to fully understand operational and solvency risks.

UPM CONVEYORS HOLDINGS LIMITED - Analysis Report

Company Number: 13828559

Analysis Date: 2025-07-20 16:47 UTC

1. Risk Rating: MEDIUM
   The company shows strong net assets primarily due to substantial fixed asset investments in subsidiaries, but persistent net current liabilities and modest cash reserves raise concerns about short-term liquidity and operational cash flow. The going concern statement relies on director and subsidiary support, which introduces some dependency risk.

2. Key Concerns:

• Negative net current assets (circa -£549k) suggest potential liquidity stress, with current liabilities significantly exceeding current assets.
• High amounts owed to group undertakings (£225k) and other creditors indicate reliance on related party funding and external payables.
• Limited operational activity as a holding company, with revenue and profitability details not disclosed, may challenge sustainability without active trading subsidiaries generating cash flow.

3. Positive Indicators:

• Solid net asset base (£1.36m) primarily from investments in subsidiaries, evidencing underlying asset value.
• No overdue filings or regulatory issues; accounts and confirmation statements are up to date, reflecting compliance.
• Directors have confirmed the company’s ability to continue as a going concern supported by trading subsidiaries and director backing.

4. Due Diligence Notes:

• Investigate the financial health and cash flow of the principal subsidiaries to assess the reliability of support for the holding company.
• Clarify the nature and terms of amounts owed to group undertakings and other creditors to understand repayment schedules and obligations.
• Review any contingent liabilities or off-balance sheet exposures not evident in the filing.
• Examine dividend policy and historical payments (£218k dividends in last year despite negative working capital) to evaluate cash distribution strategy versus liquidity needs.