PHL GROUP HOLDCO LIMITED

Executive Summary

PHL Group Holdco Limited demonstrates strong balance sheet liquidity and sound governance, positioning it well to meet obligations in the near term. However, a notable decline in turnover and significant debtor balances warrant careful scrutiny regarding revenue sustainability and cash flow risk. With proactive management of regulatory and operational risks, the company appears financially stable but should be monitored for ongoing sector challenges.

PHL GROUP HOLDCO LIMITED - Analysis Report

Company Number: 13917258

Analysis Date: 2025-07-29 18:05 UTC

1. Risk Rating: LOW
   PHL Group Holdco Limited exhibits strong financial stability evidenced by substantial net current assets and shareholders’ funds relative to minimal liabilities. The company is active, compliant with filing deadlines, and operates in a regulated healthcare sector with demonstrated governance controls.

2. Key Concerns:

• Revenue Decline: Turnover dropped from £42.37M in 2023 to £31.67M in 2024, a significant decrease that may affect future cash flows and operational funding.
• Dependence on Debtors: Large debtor balances (~£4.9M) represent a significant portion of current assets; potential recovery risk or delayed payments could impact liquidity.
• Sector Regulatory Risks: Operating in healthcare, the company faces ongoing regulatory and policy changes that could impact revenue streams and compliance costs, requiring vigilant management.

3. Positive Indicators:

• Strong Net Current Assets: Net current assets exceed £4.9M with minimal current liabilities, indicating excellent short-term liquidity and solvency.
• Robust Governance and Compliance: No overdue filings; detailed strategic reporting and active board engagement with multiple directors and clear governance practices.
• Operational Metrics: Low employee turnover (2.39%), high patient feedback (95%), and clinical rota-fill above target (94%) suggest operational stability and quality service delivery.

4. Due Diligence Notes:

• Debtors Analysis: Investigate the composition and age profile of debtors to assess collectability risk and impact on cash flow.
• Revenue Decline Causes: Understand reasons behind the turnover decrease and evaluate sustainability of the current business model and future growth prospects.
• Regulatory Compliance: Review internal controls and compliance frameworks given sector sensitivity, including any ongoing or potential inspections or changes in healthcare policy impacting the company.
• Intercompany and Group Structure: As a holding company, clarify the subsidiary structure and any intercompany balances or guarantees that may affect financial risk.