Company Number: 13561650

Analysis Date: 2025-07-20 14:00 UTC

1. Risk Rating: LOW
   D P Racing Limited demonstrates a strong liquidity position with substantial net current assets and cash reserves relative to current liabilities. The company has a positive net asset position that has increased steadily over the last three years, indicating financial stability and solvent operations. There are no overdue filings or indications of regulatory non-compliance.

2. Key Concerns:

• Reliance on finance leases: The company carries hire purchase obligations (£18,657 total, with a reduction in long-term liabilities), which could impact cash flows if not managed prudently.
• Concentration of control and ownership: One individual holds 75-100% ownership and voting rights, potentially raising governance risk from lack of diversity in control.
• Limited employee base: Operating with only one employee (the director) may pose operational risks related to capacity and succession.

3. Positive Indicators:

• Strong liquidity: Cash balances remain consistent around £110k with net current assets increasing to £125.6k in 2024 from £104.5k in 2023.
• Increasing net assets and shareholders’ funds: Up from £129k in 2023 to £155k in 2024, reflecting retained earnings growth and prudent financial management.
• Up-to-date statutory filings: No overdue accounts or confirmation statements, indicating compliance with Companies House requirements.
• Clear financial reporting: The accounts are prepared under FRS 102 with detailed notes and show transparency over finance leases and related party loans.

4. Due Diligence Notes:

• Review the terms and repayment schedule of the finance leases/hire purchase agreements to assess future cash flow commitments and potential refinancing risks.
• Investigate the business model sustainability given the single employee/director setup and reliance on one major shareholder for operational decisions.
• Confirm the nature and terms of the loan to the shareholder disclosed within debtors to ensure no related party transaction risks.
• Understand the company’s revenue streams and client base under SIC 93199 (Other sports activities) to assess operational stability and market risks.