PROTEUS MARINE RENEWABLES LIMITED

Executive Summary

Proteus Marine Renewables Limited exhibits a strong financial position with solid solvency and liquidity metrics and no compliance issues. However, investor attention should focus on recent director turnover, significant deferred tax provisions, and shareholder concentration risks. Further due diligence on governance, asset valuations, and debtor quality is advised to confirm operational stability.

PROTEUS MARINE RENEWABLES LIMITED - Analysis Report

Company Number: 14226131

Analysis Date: 2025-07-20 12:13 UTC

1. Risk Rating: LOW

Proteus Marine Renewables Limited demonstrates strong solvency and liquidity metrics for a company incorporated recently (2022). The substantial net assets and positive working capital position indicate a low risk of insolvency at present. No overdue filings or regulatory compliance issues are apparent.

2. Key Concerns:

• Director Turnover: The company has experienced frequent changes in directors within a short timeframe, including recent resignations in 2023 and 2024. This could suggest governance instability or transitional challenges.
• Deferred Tax Provision: The company carries a significant deferred tax liability (£495,588 in 2023, down from £632,934 in 2022) which may impact future cash flows and profitability.
• Concentration Risk: A single individual (Mr. James William Dalrymple) holds majority control (50-75% shares and voting rights), potentially leading to governance risks related to minority shareholder protections.

3. Positive Indicators:

• Strong Financial Position: The company reports net assets of over £5.1 million and net current assets of approximately £2.6 million as at 31 December 2023, indicating healthy solvency.
• Adequate Liquidity: Cash balances exceed £1 million, supported by substantial debtors (£3.15 million), with current liabilities well covered.
• No Filing or Compliance Issues: All statutory accounts and confirmation statements are filed on time with no overdue status, reflecting good compliance.
• Asset Base: Tangible fixed assets valued at approximately £2.84 million support operational capacity and value.
• Industry Focus: The company operates in specialized design activities and manufacture of marine engines/turbines, sectors with growth potential linked to renewable energy trends.

4. Due Diligence Notes:

• Investigate the reasons behind the high director turnover, especially recent resignations, to assess governance stability and potential management risks.
• Review the nature and timing of the deferred tax liabilities to understand their impact on cash flow projections.
• Examine the quality and collectability of the substantial debtor balances, especially the amounts owed by group undertakings (£3.12 million).
• Confirm the valuation methods and assumptions for the revalued tangible fixed assets as these form a material part of the balance sheet.
• Assess shareholder agreements and control rights to understand minority protections and governance arrangements given the concentration of control.
• Evaluate the company’s business plan and cash flow forecasts to confirm ongoing operational sustainability beyond the current financial position.