DECAPENDE LIMITED

Executive Summary

Decapende Limited has demonstrated a significant balance sheet recovery with improved net assets and increased fixed assets, reflecting its real estate activities. However, substantial long-term liabilities and historical negative equity present medium-level solvency and liquidity risks that warrant further investigation. Limited operational data and absence of employees highlight the need to confirm business sustainability beyond asset holdings.

DECAPENDE LIMITED - Analysis Report

Company Number: 13181352

Analysis Date: 2025-07-19 12:42 UTC

1. Risk Rating: MEDIUM
   The company shows a significant turnaround in net assets from negative in previous years to a positive £373k in the latest period, indicating recent improvement. However, the presence of substantial long-term liabilities (£473k) relative to current assets and the prior years' losses suggest some ongoing solvency and liquidity concerns that require monitoring.

2. Key Concerns:

• High Long-term Liabilities: The company carries £473,579 in creditors due after more than one year, which is sizeable relative to net assets and may pressure future cash flows.
• Prior Negative Equity: The company had negative shareholders’ funds in prior years (-£85k), reflecting accumulated losses or undercapitalization until the recent turnaround.
• Limited Operational Data: No employees are reported and the company operates as a micro entity with minimal turnover information, raising questions about the sustainability of business operations beyond asset management.

3. Positive Indicators:

• Improved Net Assets: The latest accounts show a healthy net asset position of £373,305, up from negative equity previously, suggesting recent capital injection or asset revaluation.
• Fixed Asset Growth: Fixed assets increased substantially to £795,000, indicating investment in property consistent with its real estate letting SIC code (68209).
• Current Asset Improvement: Current assets rose to £54,384 from just £3,025, improving working capital and liquidity metrics.

4. Due Diligence Notes:

• Verify the nature and terms of the long-term liabilities to assess repayment risk and covenant compliance.
• Understand the cause of the prior accumulated losses and whether the recent positive net asset position reflects sustainable profitability or one-off gains/revaluations.
• Confirm ongoing operational activities and revenue generation given the lack of employees and micro entity status.
• Review directors’ explanations or disclosures regarding future outlook, business plans, and risk factors not covered in the micro-entity accounts.