CDS PROPERTY DEVELOPMENT LIMITED

Executive Summary

CDS Property Development Limited demonstrates some positive financial developments including improved net current assets and shareholder equity within its first two years of operation. However, volatility in current liabilities and lack of profit and loss information present moderate risks that warrant further investigation. Overall, the company shows operational viability but should be monitored closely for liquidity and cash flow stability.

CDS PROPERTY DEVELOPMENT LIMITED - Analysis Report

Company Number: 14554479

Analysis Date: 2025-07-20 11:15 UTC

1. Risk Rating: MEDIUM

The company is relatively new, incorporated in late 2022, and currently active with no overdue filings, which is positive. However, the financial data reveals some concerns around fluctuating current liabilities and relatively modest net current assets. The company operates in construction of domestic buildings, typically a capital-intensive sector with associated risks.

2. Key Concerns:

• Volatility in Current Liabilities: There was a significant reduction in current liabilities from £215,317 in 2023 to £82,015 in 2024, which may indicate irregular payment cycles or restructuring of short-term debts. Such volatility can suggest unstable cash flow management.
• Modest Net Current Assets: Although net current assets improved from £1,180 in 2023 to £54,856 in 2024, the absolute values remain modest, indicating limited working capital buffer to absorb unforeseen expenses or delays.
• Lack of Profit and Loss Disclosure: The absence of an income statement (which is permissible under small company exemptions) limits the ability to assess operational profitability and sustainability.

3. Positive Indicators:

• Positive Shareholders’ Funds Growth: Shareholders’ funds increased substantially from £1,180 to £54,856 in one year, indicating capital injection or retention of earnings which strengthens the equity base.
• Adequate Cash Position: Cash on hand remains relatively healthy at £96,417 as of March 2024, supporting short-term liquidity.
• No Overdue Filings: The company has complied with statutory filing deadlines, indicating sound governance and regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and reason for the large reduction in current liabilities between 2023 and 2024 to understand if this reflects improved financial health or deferred obligations.
• Review detailed turnover and profitability figures, possibly through internal management accounts, given the absence of P&L disclosures in public filings.
• Assess the relationship and transactions between the company and related parties, especially given the presence of debtors classified as “Amounts owed by participating interests” in prior year.
• Confirm ongoing compliance with construction industry regulations and any contingent liabilities arising from projects underway or completed.