DE LUXE LIMITED
Company number 02453232 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: De Luxe Limited
1. Credit Opinion: CONDITIONAL
Conditional approval is appropriate based on the available information.
Reasoning: - The company has a very strong historic balance sheet: net assets of £2.73m and cash of £2.77m at 31 March 2015. - There is no evidence of bank borrowings, hire purchase, or long-term debt in the filed balance sheet. - The company is active, incorporated in 1989, and operates in event catering — a sector that can be profitable but is sensitive to economic cycles and event market disruption. - The main weakness is data age: the detailed accounts provided are for the year ended 31 March 2015. Later filing information suggests accounts are not currently overdue, but the actual recent financial figures have not been provided for review. - A facility can be justified by the company's historic cash strength, but approval should be conditional on current financial information, security, and ongoing monitoring.
2. Financial Strength
The balance sheet position at 31 March 2015 was exceptionally strong:
| Year ended 31 March | 2015 £ | 2014 £ | 2013 £ | 2012 £ |
|---|---|---|---|---|
| Total assets | 3,079,920 | 2,122,845 | 1,537,843 | 800,360 |
| Current liabilities | (349,907) | (396,439) | (352,782) | (245,238) |
| Net assets | 2,730,013 | 1,726,406 | 1,185,061 | 555,122 |
| Cash at bank | 2,770,799 | 1,634,957 | 606,305 | 163,718 |
- Net assets grew from £555k to £2.73m over three years — a strong trajectory.
- Cash alone represented 90% of total assets in 2015.
- The company had no material long-term liabilities on the balance sheet.
- Tangible fixed assets were modest at £59,907, meaning the business is not asset-heavy. The strength is in cash and working capital, not property or equipment.
- Shareholders’ funds of £2.73m provide a substantial capital buffer against trading shocks.
Key limitation: No profit and loss account or turnover figures were provided. We can see the balance sheet is strong, but we cannot verify current profitability, margins, or revenue trend from the data available.
3. Cash Flow Assessment
The working capital position at 31 March 2015 was very liquid:
- Current assets: £3,020,013
- Current liabilities: £349,907
- Net current assets: £2,670,106
- Current ratio: approximately 8.6
- Quick ratio: approximately 8.6
The company held £2.77m in cash against only £350k of short-term creditors. This is a very comfortable liquidity position and suggests a strong ability to meet short-term obligations as they fall due.
Debtors were £225,713 and stock was low at £23,501, which is consistent with a service-led catering business rather than a stock-heavy operation.
Cash flow concerns: - Event catering can have uneven cash flow due to seasonality and timing of client prepayments. - The 2015 accounts do not show any intercompany balances, but the company is now controlled by Dlx Bidco Limited, so cash may have moved within the group since that date. - We have no recent cash flow statement, so current cash generation cannot be confirmed.
4. Monitoring Points
If a facility is granted, the following should be monitored closely:
- Up-to-date financials — Provide full annual accounts for all years since 2015 and current management accounts.
- Cash confirmation — Confirm the current cash position and that balances are unrestricted and not pledged to another lender.
- Group exposure — Dlx Bidco Limited owns more than 75% of the company. Any intercompany lending, dividends, or cash sweeps should be understood and, if necessary, subordinated to the bank.
- **Event order book