PALM (YORKSHIRE) LIMITED

1. Credit Opinion: APPROVE

The company demonstrates a very strong credit profile. There is a sustained and impressive upward trajectory in net assets, cash holdings, and overall financial strength over several years. The balance sheet is highly liquid, with cash alone covering total liabilities by nearly 3 times. The business appears well-managed and generates significant cash reserves, indicating a robust ability to service debt. There are no adverse indicators in the public record.

2. Financial Strength

• Net Assets: The company’s net worth has grown from £362,447 in 2021 to £1,605,767 in 2026, a compound annual growth rate of approximately 35%. This demonstrates exceptional profitability and retained earnings.
• Leverage: The balance sheet is very lowly leveraged. Total liabilities of £619,644 are dwarfed by net assets of £1.6M and cash of £1.8M. The company has virtually no long-term debt (only £18,252 in creditors due after one year).
• Resilience: The financial trajectory shows consistent growth through various economic cycles post-2020. The company has built a substantial equity buffer, providing a strong cushion against market downturns.

3. Cash Flow Assessment

• Liquidity: The cash position is exceptionally strong. Cash at bank of £1,815,352 is nearly three times total liabilities (£619,644). This provides an immediate and substantial liquidity buffer.
• Working Capital: Net current assets (working capital) have grown from £1,076,929 in 2025 to £1,396,089 in 2026. The current ratio (current assets / current liabilities) is approximately 3.25x (2,015,733 / 619,644), which is very healthy and indicates a strong ability to meet short-term obligations.
• Debtor Management: Debtors have decreased significantly from £695,768 to £165,381 year-on-year, while cash has nearly doubled. This suggests a strong focus on cash collection and potentially a shift towards more cash-based or upfront payment terms, which is a positive credit indicator.

4. Monitoring Points

• Profitability Detail: The filed accounts are unaudited and do not include a profit and loss account. While the balance sheet is strong, a review of profitability margins and revenue trends would be prudent for a more complete picture.
• Working Capital Composition: While the debtor position has improved, the stock level has increased from £20,000 to £35,000. We should monitor stock turnover to ensure it remains efficient and doesn't become a drain on cash.
• Ownership Structure: The company is ultimately controlled by a corporate entity (Syntric Bidco Limited). We should understand the financial standing of this parent entity and the group's overall strategy, as a change in group direction could impact the subsidiary's cash management policies.
• Director Changes: A director (Xxxxxx Xxxxxxxxname shown to subscribers) resigned in October 2026. While this is a routine occurrence, it is worth noting in the context of management continuity.

Names of the people mentioned are shown to subscribers. See subscription