UNIPLATE LIMITED
Company number 02013646 · 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: UNIPLATE LIMITED
1. Credit Opinion: APPROVE
Rationale: Uniplate Limited presents a strong credit profile characterized by exceptional liquidity, a debt-free balance sheet, and consistent equity growth over the past decade. The company's current ratio of 3.24x and cash ratio of 1.26x indicate it can comfortably service any reasonable debt obligation. The business has demonstrated resilience through economic cycles, including COVID-19, and benefits from German parent company backing. The risk of default is low.
2. Financial Strength
Balance Sheet Summary (2024): - Total Assets: £2,644,205 (Fixed: £150,365 + Current: £2,493,840) - Total Liabilities: £794,750 (Current: £768,792 + Provisions: £25,958) - Net Assets: £1,849,455 - Shareholders' Funds: £1,849,455 (comprising £1,000 share capital + £1,848,455 retained earnings)
Key Observations:
Capital Structure: The company is essentially equity-funded with no long-term debt visible on the balance sheet. The gearing ratio is negligible, providing significant headroom for additional borrowing.
Asset Quality: Current assets dominate (94% of total assets), with a healthy mix of: - Cash: £970,028 (39% of current assets) - Trade debtors: £903,285 (36%) - Stock: £620,527 (25%)
Equity Trajectory: Consistent growth in shareholders' funds over the past four years, recovering from a 2020 trough:
| Year | Net Assets | YoY Change |
|---|---|---|
| 2020 | £1,598,856 | -7.7% |
| 2021 | £1,666,214 | +4.2% |
| 2022 | £1,789,443 | +7.4% |
| 2023 | £1,828,964 | +2.2% |
| 2024 | £1,849,455 | +1.1% |
The growth rate has moderated, which warrants monitoring but is not concerning given the already substantial equity base.
Parent Company Support: The going concern note explicitly references "continued support of the holding company" (Isi Infrastruktur Beteiligungs Gmbh, Germany). This provides an additional layer of financial backing, though the extent of this support should be understood.
3. Cash Flow Assessment
Liquidity Position – Exceptional:
| Metric | 2024 | 2023 | Benchmark |
|---|---|---|---|
| Current Ratio | 3.24x | 2.81x | >1.5x |
| Quick Ratio | 2.44x | 1.57x | >1.0x |
| Cash Ratio | 1.26x | 0.95x | >0.5x |
The company can cover all current liabilities with cash alone—a rare and strong position. Liquidity has improved year-on-year.
Working Capital Analysis:
- Net Current Assets: £1,725,048 (2024) vs £1,755,672 (2023)
- Working capital remains substantial and more than adequate
Notable Movements: - Debtors decreased from £1,197,469 to £903,285 (-24.6%). This could indicate improved collections, lower sales, or a change in customer mix. Without P&L data, the driver is unclear. - Cash increased from £920,871 to £970,028 (+5.3%) - Stock increased modestly from £607,755 to £620,527 (+2.1%) - Current liabilities decreased from £970,423 to £768,792 (-20.8%), suggesting trade creditors have been paid down or reduced purchasing volumes
Cash Generation Capacity: The consistent increase in retained earnings (from £1,598,856 in 2020 to £1,848,455 in 2024) indicates the business generates positive cash flow from operations. Over four years, approximately £250k has been added to reserves, averaging roughly £62k per annum in retained profit.
4. Monitoring Points
| Risk Area | Metric to Monitor | Current Status | Threshold |
|---|---|---|---|
| Liquidity | Current ratio | 3.24x | Watch if <2.0x |
| Cash | Cash balance | £970k | Watch if <£500k |
| Debtor Collection | Debtors/turnover ratio | £903k debtors | Significant increase would be concerning |
| Profitability | Retained earnings growth | +£20k YoY | Watch for declining trend |
| Intercompany | Related party balances | Not disclosed in filleted accounts | Request details on intercompany loans |
| Dividend Policy | Dividend extraction vs retention | Retained earnings growing | Large dividends could weaken position |
| Parent Company | Financial health of Isi Infrastruktur | Going concern support noted | Monitor parent's creditworthiness |
| Stock | Stock turnover/obsolescence | £620k stock | Watch for significant increases without sales growth |
Specific Recommendations: 1. Request full (unfilleted) accounts or management information to assess turnover, gross margins, and operating profit—critical gaps in the current assessment 2. Clarify the nature of intercompany arrangements with the German parent (trade, loans, management charges) 3. Understand the debtor reduction—is this efficiency improvement or revenue decline? 4. Confirm any contingent liabilities or guarantees provided to group companies 5. Monitor for potential dividend extraction that could weaken the balance sheet