DELPHI VENTURES SPV 1 LLP

Executive Summary

DELPHI VENTURES SPV 1 LLP shows strong financial stability with net assets fully supported by members’ capital and no liabilities, indicating no immediate financial distress. However, limited operational activity and absence of profit and loss disclosure suggest it is primarily an investment holding entity, requiring ongoing monitoring of investment health and enhanced financial transparency.

DELPHI VENTURES SPV 1 LLP - Analysis Report

Company Number: OC433091

Analysis Date: 2025-07-20 15:28 UTC

Financial Health Assessment: DELPHI VENTURES SPV 1 LLP

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1. Financial Health Score: B

Explanation:
DELPHI VENTURES SPV 1 LLP demonstrates a stable financial position with net assets equal to £325,000 and no current liabilities reported. The balance sheet shows full backing of assets by members' capital, indicating no immediate liquidity distress or solvency concerns. However, the absence of a profit and loss account (exempted filing) and lack of operational income or expenses (no employees, no revenue data) means the business is in a nascent or investment-holding stage. This limits insights into profitability and cash flow health, thus preventing a top-tier rating.

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2. Key Vital Signs

Metric	Value	Interpretation
Net Current Assets	£325,000	Positive working capital suggests good short-term liquidity.
Net Assets (Equity)	£325,000	Members’ capital fully supports the LLP’s assets; financially sound.
Members’ Capital	£341,000	Reflects initial or ongoing capital contributions by members.
Other Reserves	-£16,000	Small negative reserves may reflect minor adjustments or losses.
Average Number of Employees	0	LLP currently has no employees, suggesting limited operational activity.
Audit Status	Exempt (Small LLP)	Limited disclosure reduces full transparency but is normal for small LLPs.

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3. Diagnosis: Underlying Financial Health

The LLP’s balance sheet is in good shape, showing a "healthy cash flow" equivalent in asset backing, with investments fully covered by members’ capital and no short-term debts. The absence of liabilities is a strong "vital sign" indicating no immediate financial distress or solvency issues.

However, the "symptoms" of no employees and no disclosed profit and loss activity suggest the LLP may be in an early investment or holding phase rather than an active trading entity. This is supported by the unlisted investment valued at £325,000, which appears to be the sole asset. The minor negative other reserves (-£16,000) should be monitored but are not alarming given the scale.

The LLP’s exemption from audit and non-filing of the profit and loss account is typical for entities under the small LLP threshold but means there is limited insight into operational performance or cash flow dynamics. This could mask underlying risks if the investment fails to generate returns.

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4. Recommendations

• Operational Review: As the LLP currently has no employees and limited activity, clarify the business model and strategic objectives. If it is an investment vehicle, ensure robust monitoring of investment performance and valuation methodologies.
• Financial Reporting: Consider voluntarily preparing a profit and loss statement or more detailed management accounts to provide stakeholders with a clearer picture of financial performance and cash flow.
• Reserves Monitoring: Investigate the cause of negative other reserves and address any underlying losses or adjustments to prevent erosion of equity.
• Liquidity Planning: Maintain sufficient liquidity buffers or access to capital to manage any unforeseen expenses or investment risks.
• Governance Enhancements: Ensure that designated members (including corporate members based in Cayman Islands) maintain active oversight to mitigate risks related to control and compliance.
• Future Filings: Keep up to date with filing deadlines to avoid penalties and maintain transparency.

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