PSLAB - RE LIMITED

Executive Summary

PSLAB - RE LIMITED is a small holding company with limited independent operations and significant reliance on its parent group for financial support. Recent impairment of investments has weakened its balance sheet, but it maintains positive net current assets and no external debt. Credit approval is conditional upon continued parent backing and stable intra-group funding.

PSLAB - RE LIMITED - Analysis Report

Company Number: 12782096

Analysis Date: 2025-07-29 20:22 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   PSLAB - RE LIMITED is a small private limited company with limited operational scale (1 employee/director) and no trading activity indicated aside from intercompany balances. The company’s principal activity is as a holding company, evidenced by investment in subsidiaries. Its net assets and shareholder funds have decreased significantly in 2023 due to a large impairment charge on investments (£15,000 reduction), which weakens its asset base and overall financial strength. However, the company remains solvent with positive net current assets and no overdue filings. Credit approval is conditional on continued support from the parent company (PSLab Holding Limited), which controls 75-100% of shares and has confirmed it will not seek repayment until net assets improve. The company’s ability to meet external debt obligations depends heavily on this parent support, as it has limited independent cash flow generation.

2. Financial Strength:

• Net assets declined from €23,826 (approx. £20,400) in 2022 to €8,826 (approx. £7,600) in 2023, primarily due to impairment on fixed asset investments.
• Fixed assets fell from €16,998 to €1,998, signalling a marked reduction in subsidiary valuations.
• Current assets are mainly debtors owed by group undertakings (€7,827), indicating reliance on intra-group funding rather than external revenue generation.
• Current liabilities remain low (€999), resulting in a strong net current asset position (€6,828), but creditors are also intra-group, showing limited third-party exposure.
• Share capital is nominal (£100), but shareholder funds recorded are significantly higher due to equity injections or reserves from the parent.
• The company operates in the holding company sector (SIC 64209) and does not trade commercially on its own, which limits direct business risk but increases dependency on parent group financial health.

3. Cash Flow Assessment:

• No cash or bank balances are disclosed; liquidity appears to be largely in receivables from group companies.
• The company has no external debt and minimal current liabilities, so immediate liquidity risk is low.
• Cash flow to service any external financing would be limited without parent company support or group funding.
• Working capital is positive but tied up in intra-group balances, which may not be readily convertible to cash if needed.
• The impairment of investments suggests challenges in subsidiary performance or valuation, which could impact future group support.

4. Monitoring Points:

• Monitor net assets and investment impairment trends, particularly if further write-downs occur.
• Review confirmations of ongoing parent company support and any changes in intercompany balances.
• Watch for any overdue filings or changes in company status that might indicate financial distress.
• Track external debt or creditor levels should the company seek third-party financing.
• Observe any changes in director appointments or governance that could signal operational shifts.