CMI DISTRIBUTION LIMITED
Company number 02961239 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Assessment: CMI Distribution Limited
1. Financial Health Score
Grade: B — Stable, solvent, and compliant, but dormant and heavily dependent on its parent group.
This is not a failing grade, but it is also not a clean bill of health for an active business. CMI Distribution Limited has a strong balance sheet and no external debt, but it is not trading, holds no cash, and its only meaningful asset is an intercompany debtor. Think of it as a patient with excellent vital signs who is currently asleep—not in danger, but not contributing to household income either.
2. Key Vital Signs
| Vital Sign | Reading | Interpretation |
|---|---|---|
| Net Assets / Shareholders' Funds | £3,286,502 | Strong and stable. Identical for 2022, 2023 and 2024. |
| Profit & Loss Reserves | £3,286,402 | Healthy accumulated retained value. |
| Called Up Share Capital | £100 | Nominal share capital; not a meaningful source of funding. |
| Current Assets | £3,286,502 | Made up entirely of “amounts owed by group undertakings”. |
| Cash | £0 | No cash in the bank. Asset is effectively an IOU from the group. |
| Current Liabilities | £0 | No short-term debts or supplier pressure. |
| Net Current Assets / Working Capital | £3,286,502 | Positive working capital, but it is not liquid cash. |
| Trading Activity | £0 income / £0 expenditure | Dormant. The company has not traded in the current or prior year. |
| Employees | 0 | No staff costs or employment-related risk. |
| Filing Compliance | Up to date | Accounts filed; no overdue filings shown. |
| Asset Concentration | 100% of assets due from group undertakings | Single source of value means concentration risk. |
3. Diagnosis
What the numbers say
This is a solvent but dormant company. It is not showing any symptoms of financial distress:
- No creditors chasing payment.
- No bank debt or external borrowings.
- No losses being reported.
- Net assets have remained at exactly the same level for three years, which shows no erosion of value.
However, there are some important underlying conditions:
- No business pulse: The company has not traded during the year or the preceding period. It generates no revenue, no profit, and no cash.
- Cash is an illusion in one sense: The £3.29m sits on the balance sheet as a debtor owed by group undertakings, not as cash. That is a normal structure for a dormant group subsidiary, but it means the company’s financial health is only as good as the parent group’s ability to repay.
- Dependence on the group: The ultimate parent is Fluidmaster Inc., a US company, and the immediate parent is Fluidmaster UK Limited. CMI Distribution Limited appears to be a holding or intra-group financing vehicle rather than an independent trading business.
Medical analogy
If CMI Distribution Limited were a patient, it would be:
- Heart rate: Low—no trading activity.
- Blood pressure: Low but stable—no pressure from creditors.
- Blood count: Healthy but with a note—all value is in one intercompany vessel.
- Overall condition: Stable, not critical, but not actively thriving.
The main risk is not insolvency. It is asset quality. The company’s entire financial health depends on one large receivable from the group. If the parent group ever experienced financial difficulty, that asset could be at risk of impairment.
4. Recommendations
These are the actions most likely to protect and improve the company’s financial wellness:
1. Monitor the intercompany debtor closely
The £3,286,502 debtor is the company’s only material asset. Each year, the directors should: - Confirm the balance with Fluidmaster UK Limited. - Review the parent group’s financial position. - Consider whether any impairment or provision is needed under FRS 102.
2. Keep filings up to date
Even dormant companies must file accounts and confirmation statements. The company is currently compliant, and that discipline should continue. Late filings would incur penalties and could damage the group’s standing with Companies House.
3. Clarify the company’s purpose
If CMI Distribution Limited is no longer needed as an active distribution business, the board should formally document its role within the group. Options include: - Retaining it as a dormant holding vehicle. - Winding it down voluntarily if it serves no future purpose. - Using it as an internal financing vehicle with clear intercompany loan terms.
4. Obtain group support documentation
If the company is reliant on the group for repayment of the debtor, a formal group support letter or intercompany agreement would strengthen the position. This is especially useful if a future lender or auditor asks about recoverability.
5. Review director succession
One director resigned in early 2026. With only one current director remaining, the group should ensure there is sufficient continuity and at least one director with authority to act on the company’s behalf.
6. Reassess going concern annually
Although there are no current warning signs, the directors should review the company’s ability to continue as a going concern each year, particularly the collectability of the group debtor.