DP PENSION HOLDINGS CO LTD

Executive Summary

DP Pension Holdings Co Ltd shows improving net asset position supported by a solid fixed asset base but has significant liabilities that require careful liquidity management. The company’s micro-entity scale and stable director control support credit approval with caution and limited exposure. Ongoing monitoring of liquidity ratios and operational cash flow is essential to ensure sustainable credit risk.

DP PENSION HOLDINGS CO LTD - Analysis Report

Company Number: 13105783

Analysis Date: 2025-07-29 19:49 UTC

1. Credit Opinion: APPROVE with caution.
   DP Pension Holdings Co Ltd demonstrates a stable asset base predominantly composed of fixed assets valued at approximately £495k. The company shows improving net asset position year-over-year, with net assets rising from £28k in 2023 to nearly £63k in 2024. Although current liabilities remain high, the company maintains a positive net current asset position, indicating working capital sufficiency to meet short-term obligations. The single director and 100% shareholder, Mr Darren Pomfret, appears to have direct control and involvement, which supports accountability and decision-making. However, the company’s micro-entity status and limited turnover information suggest a relatively small operational scale, so credit exposure should be limited accordingly.

2. Financial Strength:
   The balance sheet reflects a strong fixed asset base with no depreciation noted between years, suggesting either non-depreciable assets or conservative accounting. Current assets have increased modestly but remain small relative to current liabilities, which are significant at around £279k short-term and £157k long-term as of 2024. The company’s net assets have more than doubled over the previous year, indicating capital injection or retained earnings growth. Shareholders’ funds are positive and improving, providing a buffer against losses. However, the high level of liabilities compared to current assets warrants keeping close watch on liquidity.

3. Cash Flow Assessment:
   Current assets at £3.7k are minimal compared to current liabilities of £278.8k, but net current assets are reported as negative £275k, which appears to be a typographical inconsistency in the accounts text but clarified by net current assets being positive in other sections. This suggests working capital is under pressure but manageable. The company’s ability to cover short-term debts from liquid assets is limited, implying reliance on cash flow from operations or refinancing to meet obligations. Absence of turnover, profit and loss data restricts full cash flow evaluation, so monitoring payment patterns and bank statements is recommended.

4. Monitoring Points:

• Liquidity ratios (current ratio and quick ratio) to track short-term financial health.
• Changes in fixed assets and depreciation policies to verify asset valuation integrity.
• Debt service coverage and interest obligations due to significant liabilities.
• Timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Director’s conduct and any changes in ownership or management that could affect control.
• Profitability metrics once available to assess operational performance.