Risk Analysis: Charles Saunders Limited (01581532)

1. Risk Rating: LOW

The company exhibits strong qualitative indicators of stability: over 40 years of continuous operation, active status, full accounts being filed, no overdue regulatory submissions, and a parent-holding company structure. However, this assessment is constrained by the absence of detailed financial data (balance sheet, P&L, cash flow) in the provided information, which prevents a fully quantitative solvency and liquidity analysis. Based on available qualitative evidence, the company presents as a low-risk, established going concern.

2. Key Concerns

a) Geographic Discrepancy Between Marketing and Registration

The company website describes itself as "one of the largest and leading independent foodservice companies in the South West." However, the registered office is located in North Shields, Tyne and Wear — in the North East of England, approximately 300 miles away. While not a regulatory issue, this inconsistency is material for an investor and warrants clarification: the website may be outdated, the company may have relocated or divested the South West operation, or there may be a group restructuring that is not immediately apparent from public filings.

b) Dual PSC Declarations Both Exceeding 75%

Two Persons with Significant Control are listed, each claiming ownership of more than 75% of the company's shares: - Charles Saunders Holdings Limited (corporate entity) - Xxxxxx Xxxxxxxxname shown to subscribers (individual)

This is structurally unusual. The most plausible explanation is that Xxxxxx Xxxxxxxxname shown to subscribers controls the holding company, which in turn owns the operating company, with Xxxxxxxname shown to subscribers being identified as the ultimate beneficial owner under PSC transparency rules. However, the way ownership percentages are presented could mislead a reader, and the structure should be verified — particularly to confirm that indirect control is being correctly reported and that there is no other undisclosed beneficial owner.

c) Absence of Financial Data in Available Records

No balance sheet, profit and loss, or cash flow figures have been provided. While the filing history indicates full accounts are being submitted, the actual financial health — turnover, margins, working capital position, gearing — cannot be assessed from the available evidence. For a wholesale food distribution business, which can be capital-intensive (cold chain logistics, vehicle fleets, stock financing), this is a meaningful gap.

3. Positive Indicators

• Exceptional Longevity: Incorporated in August 1981, the company has operated continuously for over 44 years, with a prior name change in 1983 suggesting a quick rebrand post-incorporation. This is a strong indicator of resilience through multiple economic cycles.

• Active Status, No Insolvency Markers: The company is active, not in liquidation, administration, or receivership. There is no evidence of CCJs or winding-up petitions in the provided data.

• Full Accounts Being Filed: The accounts category is "Full" (not abridged or filleted), and the last accounts were made up to 30 September 2025, indicating current and complete statutory compliance.

• No Overdue Filings: Both accounts and confirmation statement are up to date. The confirmation statement was last made up on 17 January 2026.

• Holding Company Structure: The presence of Charles Saunders Holdings Limited as a parent suggests a formal group structure, which often indicates professional governance, tax planning, and potential access to inter-company funding.

• Three Current Directors: A board of three (Xxxxxx Xxxxxxxxname shown to subscribers, Xxxxxx Xxxxxxxxname shown to subscribers, Xxxxxx Xxxxxxxxname shown to subscribers) provides reasonable governance spread, reducing key-person risk compared to a sole-director model.

• Defensive Sector Exposure: SIC 46380 (wholesale of other food including fish, crustaceans and molluscs) places the company in a relatively defensive end-market — food distribution is generally non-cyclical with stable demand from the foodservice sector.

• Registered at a Trading Estate: The address (Tyne Tunnel Trading Estate) is consistent with a genuine operational wholesale/distribution business requiring warehouse and logistics space.

4. Due Diligence Notes

The following items should be investigated before any investment decision:

1. Request the latest filed accounts (year ending 30 September 2025) to assess: turnover trend, gross/net margins, current ratio, gearing, and net asset position. Without these, solvency and liquidity cannot be properly evaluated.

2. Clarify the geographic footprint. Confirm whether the "South West" description on the website is current, and identify the actual trading locations. If the company has divested or relocated, this is a material change in business profile.

3. Map the corporate group structure. Verify the relationship between Charles Saunders Limited, Charles Saunders Holdings Limited, and any other group entities. Confirm Xxxxxx Xxxxxxxxname shown to subscribers's direct and indirect shareholdings, and identify any other minority shareholders.

4. Review director history. Obtain full appointment and resignation histories for all current and former directors over the past 5–10 years. Check for any undisclosed disqualifications or insolvency associations on Companies House.

5. Investigate the secretary resignation of Xxxxxx Xxxxxxxxname shown to subscribers on 27 July 2026. Confirm whether she is related to Xxxxxx Xxxxxxxxname shown to subscribers and whether this is a routine retirement or indicative of a governance change. A private limited company is not legally required to have a secretary, but the departure may warrant a brief review.

6. Trade credit and customer concentration. For a foodservice wholesaler, key risks include concentration with a small number of large customers (e.g., pub chains, hotel groups, contract caterers) and exposure to commodity price volatility (particularly relevant given the fish/crustaceans/molluscs SIC code). A customer concentration analysis is recommended.

7. Confirm SIC code accuracy. If the business has diversified beyond fish/crustaceans/molluscs into broader foodservice wholesale (as the website suggests), the SIC code may not reflect current activity. This is not a compliance issue but affects comparability with industry benchmarks.

8. Check for any charges registered against the company at Companies House, which would indicate secured borrowing and provide insight into the capital structure.

9. VAT and PAYE compliance — request evidence of up-to-date submissions with HMRC, as these are not visible from Companies House data but are leading indicators of financial distress.

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