DEKOMED LIMITED
Company number 02596984 · 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 Opinion: APPROVE
Dekomed Limited presents a very low-risk credit profile. The company has no external borrowings, holds substantial cash reserves (£892k) that exceed total current liabilities (£689k), and has built significant retained earnings (£1.84m) over a 35-year trading history. The single director and concentrated ownership introduce moderate key-person risk, but the financial strength and essential nature of the business (medical equipment supply) strongly support approval for standard credit facilities.
Financial Strength
- Net assets have grown steadily from £998k (2017) to £1.84m (2026), reflecting consistent retained profitability.
- Total equity (shareholders’ funds) of £1.84m is entirely funded by retained earnings; no bank debt or long-term loans are present.
- The balance sheet is asset-rich, with tangible fixed assets of £766k (including freehold property revalued at £654k) and current assets of £1.89m.
- Provisions for deferred tax (£125k) are the only non-current liability, indicating minimal financial leverage.
Cash Flow Assessment
- Cash at bank of £892k (2026) is down from £1.00m (2025) but remains strong, covering current liabilities 1.29x.
- Net current assets (working capital) of £1.20m provide a comfortable liquidity buffer.
- The current ratio is 2.74x and the quick ratio 2.16x, well above prudent thresholds.
- Cash outflow appears linked to capital investment (£137k in fixed assets) and working capital growth (debtors +£199k, creditors +£128k). No reliance on external financing is evident.
Monitoring Points
- Cash and debtor levels: The £110k cash reduction and £199k debtor increase warrant review of collection cycles and cash conversion.
- Trade creditor trends: A rise in trade creditors (£364k → £407k) should be tracked to ensure payment terms remain manageable.
- Profitability trajectory: Only a modest increase in profit & loss reserves (£14k) in 2026; future filings should confirm sustainable earnings.
- Key-person concentration: Single director with 75%+ control; succession or contingency plans would strengthen long-term resilience.