Credit Profile & Financial Strength
For Barclays, NatWest, and Financial Partners
Total Assets
£41.8M
Net Equity
£23.3M
Debt/Equity
0.45x
Current Ratio
2.18x
Free Cash Flow
£945k
Interest Cover
1.19x
Banking Facilities
Barclays Overdraft£500k
Invoice Discounting£5M (85% adv)
NatWest Mortgage£5.8M
Seller Note£10M (4-yr)
- Invoice discounting at 4% fee
- NatWest mortgage repayable on demand post-acquisition
- Director loans (£1M) paid off in sale
Unencumbered Assets
Victoria House£3M
Land Holdings£5.3M
US Stake£5M
Total Unencumbered£13.3M
- Victoria House not in production use - saleable
- Strong collateral position for additional facilities
Cash Position
Cash on Hand£175k
Operating CF£1.64M
Net Cash Flow-£396k
Revenue£49.3M
- 51% revenue in first 5 months (seasonality)
- Borrowings may near limits H1 CY+1
Key Strength: £13.3M unencumbered assets provide significant headroom for facility expansion or asset-backed lending
Cash Flow Management & Working Capital
Gross Margin
33.9%
EBITDA
£1.62M
EBITDA %
3.3%
Y5 Target
7-8%
Revenue CAGR
10-15%
Critical Cash Events (Year 1)
June Y1: Seller Note (30%)£3.4M
Dec Y1: Seller Note Interest£280k
By Dec Y2: Pension Catch-up£2.2M
Q2: Environmental Compliance£75-100k
Ongoing: Fork Equipment Repair£50k
Cash Flow Mitigation
- Victoria House sale option (£3M) for June payment
- Operating cash flows £1.5M/year baseline
- Invoice discounting headroom available
- Potential facility expansion with unencumbered assets
Working Capital Management
Inventory PolicyJIT purchasing (tubes)
ReceivablesInvoice discounting 85%
UK Credit Terms30-60 days
Germany Terms90 days
Central Europe60 days
Improvements Underway
- Bank reconciliation process tightening
- SAP implementation for integrated controls
- Monthly management accounts within 8 days
- Daily production meetings for variance control
Watch Item: Bank deposit postings not kept up to date historically - being addressed
Risk Mitigation & Growth Strategy
Credit Risks & Mitigations
Interest Coverage1.19x (tight)
MitigationAsset sales, EBITDA growth
Customer Conc.~45% top 5
Target<40%
Frame Source100% Zhongshan
ActionIdentifying alternatives
CBAM ExposureTaiwan supply
MitigationEastern Europe shift
Revenue Growth Drivers
E-bike Market51% of global
E-bike CAGR12.76%
Current Exposure£0
CYLO X Launch18-24 months
Online Channel5% → 15%
Channel CAGR13.55%
APAC Market48% of global
Current Exposure1%
ESG & Regulatory
CBAM ComplianceAhead of Jan 2026
Scope 3 ReportingCSRD Ready
Waste Compliance£75-100k invested
Supplier Audits2 key suppliers Y1
Governance
PE Backing£10M equity
Board OversightQuarterly ESG reviews
External AuditsFinancial + ESG
Mgmt AccountsWithin 8 days
Summary: Strong balance sheet (0.45x D/E, £13.3M unencumbered) with tight near-term cash management requirements. Growth strategy targets 10-15% CAGR with EBITDA expansion from 3.3% to 7-8%. PE-backed with quarterly governance oversight.