In this section we present the risk assessment of our financial status model developed over 20 years of corporate risk assessment.
The overall assessment and score presented here is based only on the financial results of the company up to 30 November 2023.
The latest turnover is £15.9m compared to the previous periods of £17.2m and £16.0m. The total change in sales over three years is -0.6%. The average trend over three years is 0.0%. The change in turnover for the latest period was -7.7% which indicates that the pace of growth has slowed.
EBITDA measures earnings before interest and taxation, and depreciation and amortization. The latest accounts show pre-tax profits of £24,458 and £57,335 interest paid. EBITDA for the most recent period was £327,830 as against £1.5m and £498,442 for prior years. The company has an average £763,262 EBITDA over three years, so the latest EBITDA is lower. Income drawn by directors during the latest period was £804,902.
Retained profits after all costs and dividends provides a further key indicator of cash generating potential. Recent retained profits have not been consistent. For the most recent period no profits were retained. For the previous period £1.1m retained profits are shown. When the latest loss and the previous retained profit are taken together, the average level of retained profits is £545,262.
There is a healthy surplus in working capital and all known short term obligations appear to be comfortably covered.
As at the latest accounts the company has net assets of £6.8m. There are no intangible assets included in the net assets value so all assets are tangible.
This appraisal is based on the financial performance and the overall balance sheet status. In view of this information we have qualified our credit opinion. Although the financial status may appear to justify the credit opinion, more information may be necessary before proceeding.