COLEGATE MANAGEMENT LIMITED
Company number 03348206 · 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.
Risk Analysis: COLEGATE MANAGEMENT LIMITED (03348206)
1. Risk Rating: HIGH
The company is technically insolvent on a standalone basis with negative shareholders' funds of £7.65 million and net current liabilities of equal magnitude. It has no meaningful independent liquidity, no employees, and is entirely dependent on group company support for its continuation as a going concern. While the group structure provides some mitigation, the standalone financial position represents a significant risk to any creditor or counterparty.
2. Key Concerns
Concern 1: Severe Technical Insolvency
The company has accumulated losses exceeding £7.65 million, with shareholders' funds deeply negative and deteriorating each year. The loss trajectory shows consistent erosion: from -£7,133,013 in 2017 to -£7,652,011 in 2024. This represents a worsening position of approximately £750,000 over seven years, indicating the company has no viable independent earning capacity.
Concern 2: Complete Liquidity Dependence on Group
Current assets total just £1,089 (a VAT receivable), against current liabilities of £7,653,100. Cash reserves have declined from £98,781 in 2016 to effectively nil in recent years. The company has no independent means to meet any obligation. The intercompany facility of £7,649,155 due to group companies represents 99.97% of total liabilities and is callable on 90 days' notice, creating a potential demand risk that could trigger immediate insolvency.
Concern 3: No Operational Substance
The company ceased to be an employer during 2023 and now has zero employees. With only £2 in share capital and a SIC code for "other professional, scientific and technical activities," the company appears to function purely as a group treasury vehicle or shell entity with no independent trading operations. The multiple historical name changes (five different names since 1997) suggest repeated repurposing within the group structure.
3. Positive Indicators
Group Support Framework: The intercompany facility carries no interest and the parent company, Carbrooke Limited, has maintained this support consistently. The going concern basis is explicitly confirmed by shareholder commitment for 12 months from the sign-off date of 29/09/2025, providing coverage through approximately September 2026.
Regulatory Compliance: All filings are current and not overdue. Accounts were approved promptly, and the company maintains its statutory obligations. There is no indication of filing delinquency or regulatory concern.
Longevity and Stability: The company has been incorporated since 1997 and has operated within this group structure for an extended period. The sustained group support over many years, despite accumulated losses, suggests the parent views this entity as serving a continuing purpose within the broader organisation.
4. Due Diligence Notes
| Item | Priority | Notes |
|---|---|---|
| Carbrooke Limited financial health | Critical | The parent company's solvency and liquidity directly determine whether this company can continue. Obtain and review Carbrooke Limited's latest filed accounts and group consolidated financials. |
| Nature of intercompany balance | High | Investigate whether the £7.6m represents genuine trading advances, accumulated losses funded by the group, or capital expenditure. Understanding the composition informs whether this debt would ever be repaid or is effectively permanent capital. |
| Purpose within group structure | High | Clarify why this entity exists—whether it holds assets, manages treasury functions, or serves another structural purpose. This determines whether the negative equity is operationally relevant or merely an accounting consequence of intercompany financing. |
| Security and charges | Medium | Check Companies House for any registered charges or debentures that may affect the company's assets or create prior creditor claims. |
| Group guarantee exposure | Medium | Determine whether this company has provided any guarantees or indemnities to third parties on behalf of the group, which could create contingent liabilities not visible on the balance sheet. |
| Ongoing shareholder support | Medium | The going concern note provides 12 months of confirmed support. For any medium-term engagement, understand whether formal support agreements exist beyond this period and under what conditions support might be withdrawn. |
| Director and PSC background | Low | name shown to subscribers (PSC with >75% control) and the two current directors should be assessed for their involvement across the broader group structure. The name shown to subscribers name appearing in a previous company name (ROWLAND CAPITAL LIMITED) suggests long-standing family involvement. |