DAMPAC HOLDINGS LIMITED

Executive Summary

Dampac Holdings Limited presents a low financial risk profile based on its strong net asset base, positive working capital, and timely statutory compliance. However, limited operational scale and absence of profit and loss disclosures warrant further review to confirm ongoing profitability and cash flow sufficiency. Overall, the company appears financially stable but requires additional insight into its operational and income-generating capacity.

DAMPAC HOLDINGS LIMITED - Analysis Report

Company Number: SC722087

Analysis Date: 2025-07-29 20:51 UTC

1. Risk Rating: LOW
   Dampac Holdings Limited demonstrates strong net asset growth, positive working capital, and timely statutory filings. The company’s micro-entity status and lack of employees suggest a low operational complexity and limited financial risk at this stage.

2. Key Concerns:

• Limited Operational Scale: Zero employees and micro-entity status imply reliance on directors or external resources, which may constrain scalability and operational resilience.
• Lack of Profit and Loss Disclosure: The absence of a profit and loss account limits insight into profitability and cash flow generation, which are key to assessing ongoing viability.
• Concentration of Control: Two directors each owning 25-50% shares and voting rights may present governance risks if disagreements arise, though no adverse records are noted.

3. Positive Indicators:

• Strong Net Asset Position: Net assets increased from £579,764 to £717,338 over two years, indicating asset growth and retained equity.
• Healthy Liquidity: Current assets significantly exceed current liabilities (£205,662 vs. £2,453), reflecting a comfortable short-term liquidity position.
• Good Compliance Record: All filings including accounts and confirmation statements are up to date with no overdue returns or penalties reported.
• Stable Management: Both directors have been in place since incorporation, suggesting continuity in leadership.

4. Due Diligence Notes:

• Profitability and Cash Flow: Obtain or review the company’s profit and loss account or management accounts to evaluate income generation and cash flow dynamics.
• Nature of Fixed Assets: Investigate the composition and liquidity of the £514,129 fixed assets to understand asset quality and potential for conversion to cash if needed.
• Business Model and Revenue Streams: Clarify the operational model under SIC 64991 (security dealing on own account) to assess sustainability and market risks.
• Director Backgrounds: Although no disqualifications are reported, consider routine background checks on directors for any undisclosed risks.