Credit Analysis: F.D. Todd & Sons Limited

1. Credit Opinion

CONDITIONAL APPROVAL

F.D. Todd & Sons Limited presents a fundamentally strong balance sheet with net assets of £2.13M and virtually no external liabilities (£230 in trade creditors). The company is debt-free and holds significant tangible assets in freehold land and buildings (£417k) at its Alne Material Recovery Facility. However, a conditional opinion is warranted due to a material shift in the balance sheet composition between 2024 and 2025 — cash declined from £1.37M to £362k while debtors surged from £315k to £1.34M, driven primarily by a £1.0M increase in "other debtors." This movement requires explanation before committing credit facilities. Additionally, a group reorganisation in 2025 introduced a new holding company (Allium Helmsley Group Ltd), and the company's role within the broader group structure needs clarification. Any credit facility should be contingent on understanding the nature of the £1.0M debtor balance, the purpose of the group restructuring, and the availability of group support guarantees.

2. Financial Strength

The balance sheet is exceptionally robust on paper:

• Net assets have grown consistently from £1.85M (2018) to £2.13M (2025), reflecting accumulated retained profits of £2.11M in the P&L reserve. This is a business that has generated and retained wealth over its 62-year history.
• Liabilities are negligible — total liabilities of just £230 at year-end 2025, down from £7,821 in 2024. There are no bank loans, no external borrowings, and trade creditors are effectively nil. This indicates the company is not leveraged in any meaningful way.
• Tangible fixed assets of £424k consist almost entirely of freehold land and buildings (£417k), with a modest £6.5k plant addition in 2025. The land and buildings are carried at cost with no depreciation (per accounting policy for freehold land), so the realisable value may be substantially higher than book value — a positive factor for secured lending.
• Shareholders' funds of £2.13M against share capital of just £15,000 demonstrates deep organic equity accumulation.

However, the quality of current assets has deteriorated. In 2024, the current asset base was predominantly cash (£1.37M of £1.68M total assets). In 2025, cash represents only £362k of £1.70M total assets, with £1.34M now sitting in debtors. The composition shift materially changes the risk profile — cash is certain; debtors are not. The "other debtors" balance of £1,007,781 is unexplained in the filed accounts and represents the single largest credit risk on the balance sheet.

The company files under the small companies regime with full audit exemption, meaning no profit & loss account is publicly available. This limits visibility into turnover, profitability margins, and overhead structure. With only 2 employees (up from 1 in 2024), this appears to be an asset-holding or property-owning entity within the wider Todd Waste Management group rather than a standalone trading operation.

3. Cash Flow Assessment

Liquidity position:

• Cash at bank: £362,306 (May 2025) — adequate for a company with negligible near-term obligations but a significant decline from prior years.
• Working capital (net current assets): £1,702,143 — ostensibly very strong, but heavily reliant on the recoverability of the £1.34M debtor book.
• Current liabilities of £230 mean the current ratio is effectively unmeasurable in conventional terms — the company can meet any conceivable short-term obligation from cash alone.

Cash trajectory concerns:

The total current asset base has remained relatively stable, but the cash-to-debtors substitution in 2025 is striking. Approximately £1.0M has moved from cash into "other debtors." This could represent: - An intercompany advance or loan to a group company post-restructuring - A prepayment or deposit related to a transaction - A trade debtor arising from a new or expanded activity

Without a filed P&L or directors' report with meaningful narrative, the cash generation characteristics of the underlying business cannot be assessed. The £33,296 increase in P&L reserves (2024: £2,078,194 → 2025: £2,111,490) suggests modest profitability, but this is a minimum indicator — dividends, if any, would sit above this.

The group reorganisation in 2025 (inserting Allium Helmsley Group Ltd as the new parent) may explain the debtor movement — funds may have been advanced to or reclassified within the group structure as part of the reorganisation.

4. Monitoring Points

1. "Other debtors" of £1,007,781 — This is the single most important item to investigate. Request a breakdown: who owes this, what is the nature of the balance, when is it due, and is it recoverable? If this is an intercompany balance, assess the creditworthiness of the recipient entity and whether it is subordinated or secured.

2. Group structure and intercompany dependencies — The company now sits under Allium Helmsley Group Ltd, with multiple PSCs listed (Allium Helmsley Group Ltd, Allium Helmsley Limited, and Todd Waste Management Group Limited all claiming >75% ownership). Clarify the current group ownership tree and whether any group guarantee or comfort letter is available. Assess whether group companies are net providers or consumers of cash within this entity.

3. Cash position trend — Monitor whether the cash decline stabilises or continues. If cash falls further while debtors remain high, this signals potential cash flow stress. A floor of £100k–£150k would seem prudent given minimal operating costs (2 employees, negligible trade creditors).

4. Property valuation — The freehold land and buildings at Alne Material Recovery Facility are carried at £417k cost. A current valuation would establish the realisable security value, which is relevant for any asset-backed lending facility.

5. Filing compliance — Accounts are filed on time (next due February 2027) and the confirmation statement is current. No disqualification records against the sole listed director, Xxxxxx Xxxxxxxxname shown to subscribers. Maintain standard monitoring of filing deadlines.

6. Profitability visibility — Given audit exemption and no P&L filing, request management accounts or at minimum annual turnover and operating profit figures to assess the ongoing viability of the underlying business activity. The company's SIC code (38210 — treatment and disposal of non-hazardous waste) suggests operational activity, but with only 2 employees, the scale is unclear.

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