COPPER BAY LIMITED
Company number 07391255 · 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.
Credit Analysis: COPPER BAY LIMITED
1. Credit Opinion: DECLINE (Standalone) / CONDITIONAL (with Parent Guarantee)
Reasoning: On a standalone basis, Copper Bay Limited presents unacceptable credit risk. The company is technically insolvent with negative net assets of £8,000, generates zero revenue, and holds only £4,000 in cash against £12,000 in current liabilities. It has accumulated losses exceeding £9.2 million since incorporation, entirely eroding the £8.05 million in share capital/premium injected by parent companies. The entity functions purely as a holding company for Chilean mining exploration subsidiaries and has no independent revenue-generating capacity.
Credit facilities should only be considered with a formal parent company guarantee from Central Asia Metals Plc (a publicly-quoted entity with demonstrable financial capacity), and even then, on a conditional basis with strict covenants.
2. Financial Strength
Balance Sheet Analysis (FY2024):
| Metric | 2024 | 2023 | Movement |
|---|---|---|---|
| Total Assets | £4,000 | £2,000 | +£2,000 |
| Total Liabilities | £12,000 | £16,000 | -£4,000 |
| Net Assets | (£8,000) | (£14,000) | +£6,000 |
| Cash | £4,000 | £2,000 | +£2,000 |
| Shareholders' Funds | (£8,000) | (£14,000) | +£6,000 |
Capital Structure: - Called up share capital: £43,000 - Share premium: £8,007,000 - Other reserves: £1,179,000 - Accumulated losses (P&L): (£9,237,000) - Net position: (£8,000)
Assessment: The balance sheet is severely impaired. The company has consumed virtually all equity injected by shareholders through persistent operating losses. While technically insolvent, the marginal improvement in net assets year-on-year (£6,000) suggests the parent continues to provide minimal support to keep the entity operational. The complete absence of fixed or intangible assets indicates this is a shell holding company with all operating assets held at subsidiary level.
Insolvency Risk: HIGH — Net liabilities, while small in absolute terms, combined with zero revenue generation, place the company in a vulnerable position. Continued operation depends entirely on parent company financial support.
3. Cash Flow Assessment
Liquidity Position:
| Metric | 2024 | 2023 |
|---|---|---|
| Current Assets | £4,000 | £2,000 |
| Current Liabilities | £12,000 | £16,000 |
| Working Capital | (£8,000) | (£14,000) |
| Current Ratio | 0.33x | 0.13x |
Cash Flow Dynamics: - Operating cash outflow: £237,000 (2024), £349,000 (2023) — purely administrative costs - No operating cash inflows - No interest income or other revenue streams - Trade creditors reduced from £16,000 to £12,000 — modest improvement in payable management - No bank debt, finance leases, or HP obligations
Assessment: Cash position is critically weak. The company cannot service any debt obligation from its own operations. Working capital is negative, and the current ratio of 0.33x indicates significant short-term liquidity stress. The company survives only through parent company funding arrangements, which are not disclosed in these accounts.
Funding Dependency: COMPLETE — The entity has no capacity to generate cash internally and requires continuous parent support for even minimal operating costs.
4. Monitoring Points
Immediate Concerns
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Parent Company Financial Health — Central Asia Metals Plc's financial position and willingness to continue funding is the sole determinant of this entity's viability. Monitor parent's annual results and any strategic shifts regarding Chilean operations.
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Going Concern Status — Given negative net assets and zero revenue, the auditors' going concern basis (if audited) or directors' assessment should be scrutinized. No explicit going concern note appears in the filed accounts.
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Creditor Payment — Trade creditors of £12,000 represent 3x the cash available. Monitor whether these are intra-group balances (likely, given the nature of the business) or third-party obligations.
Ongoing Monitoring
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Administrative Cost Trajectory — Costs reduced from £349k to £237k (32% reduction). Confirm whether this reflects genuine cost control or reduced activity potentially signaling parent disinvestment.
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Subsidiary Performance — The underlying Chilean mining exploration assets drive any long-term value. Monitor for impairment indicators or write-downs at group level.
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Related Party Transactions — No disclosure of related party balances in filed accounts (small company exemption utilized). Full group accounts should be requested to understand intercompany positions.
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Filing Compliance — Accounts approved 27 March 2026 for year-end 31 December 2024, within the 9-month deadline. However, the significant lag between year-end and approval date should be noted.
Key Ratios to Track
- Net asset position trend
- Cash balance relative to monthly burn rate (~£19,750/month in 2024)
- Trade creditor aging
- Any emergence of revenue or intercompany receivables
Risk Classification: Sub-standard / High Risk
Recommended Facility Structure: If credit is required, only with unconditional parent company guarantee from Central Asia Metals Plc, cross-default provisions, and regular financial reporting requirements.