DEFENCE INFRASTRUCTURE HOLDINGS LTD

Executive Summary

DEFENCE INFRASTRUCTURE HOLDINGS LTD demonstrates a solid financial position for a micro-entity, with substantial liquidity and positive net assets growth. The company's minimal operational footprint and stable governance reduce credit risk, supporting a credit approval. Continued monitoring of liquidity and operational developments is recommended to ensure ongoing repayment capacity.

DEFENCE INFRASTRUCTURE HOLDINGS LTD - Analysis Report

Company Number: 13043379

Analysis Date: 2025-07-20 13:30 UTC

1. Credit Opinion: APPROVE
   DEFENCE INFRASTRUCTURE HOLDINGS LTD presents as a micro-entity with a clean and timely filing record, no overdue accounts or returns, and positive net assets. The company’s financials show a material increase in net current assets and shareholders’ funds over the last two years, indicating improved liquidity and capitalization. The absence of employees and fixed assets suggests a lean operation, likely with minimal overheads, reducing operational risk. Directors are current civil servants with stable backgrounds, reflecting sound governance. No red flags such as insolvency proceedings or director disqualifications are noted. Overall, the company appears capable of servicing credit facilities extended within reasonable limits.

2. Financial Strength:
   The balance sheet as of 30 November 2024 shows net assets of £75,167, up from £5,199 the previous year, driven by current assets improvement from £5,190 to £75,158. Fixed assets remain negligible at £9, consistent with a micro-entity profile primarily holding cash or equivalents. The capital structure is simple, with share capital of £75 and all equity reflected in shareholders’ funds. The company has no reported liabilities, indicating a robust equity base and no immediate solvency concerns. The growth in net assets implies retained earnings or capital injections, enhancing financial resilience.

3. Cash Flow Assessment:
   Current assets likely comprise cash or equivalents given the absence of debtors or stock, providing strong liquidity to meet short-term obligations. Net current assets equal current assets, confirming no current liabilities. The company’s working capital position is strong, with current assets sufficient to cover any immediate expenses or credit commitments. However, the absence of employees and operational activity suggests limited cash outflows, so cash flow volatility is expected to be low. This implies that the company can honor credit repayments if granted but has limited revenue-generating activity.

4. Monitoring Points:

• Monitor any changes in current assets composition, ensuring liquidity is maintained.
• Watch for increases in liabilities or overdrafts which could erode net current assets.
• Track director changes or governance shifts that might impact operational stability.
• Review subsequent filings for any operational developments, given current minimal activity.
• Consider the company’s business plans or contracts that might affect cash flow and credit exposure.