D A T PROPCO LIMITED

Executive Summary

D A T PROPCO LIMITED is a newly incorporated property holding company showing early financial distress symptoms, including negative net assets and working capital deficits. Immediate actions such as capital injection and debt restructuring are recommended to stabilize and improve liquidity and solvency. Without intervention, the company risks ongoing financial strain despite a solid asset base in property.

D A T PROPCO LIMITED - Analysis Report

Company Number: 15661852

Analysis Date: 2025-07-29 13:42 UTC

Financial Health Assessment of D A T PROPCO LIMITED

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1. Financial Health Score: D

Explanation:
The company shows early symptoms of financial distress, primarily a negative net asset position and working capital deficit. Given it is a micro-entity with limited operating history (incorporated April 2024), the financials suggest initial challenges in balancing liabilities and assets, which is a concern for sustainability without intervention. The score "D" reflects a fragile financial condition requiring close monitoring and remedial action.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	83,192	Represents long-term investments, likely property given SIC code (real estate). This is a solid asset base for a new company.
Current Assets	5,267	Low liquid assets; limited cash or receivables to cover short-term obligations.
Current Liabilities	29,258	Debts due within one year; significantly higher than current assets, indicating liquidity strain.
Net Current Assets (Working Capital)	-23,991	Negative working capital ("symptom of cash flow distress") meaning short-term debts exceed short-term assets.
Creditors Due After One Year	60,548	Long-term liabilities exceed fixed assets, suggesting leverage risk and potential solvency concerns.
Net Assets (Shareholders’ Funds)	-2,185	Negative equity; company owes more than it owns, a critical warning sign ("financial anemia").

Additional Notes:

• No employees, so operational overheads are likely minimal initially.
• The company is exempt from audit as a micro-entity, so detailed financial scrutiny is limited.
• The director is the sole significant controller, indicating concentrated decision-making.

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3. Diagnosis

The financial "vital signs" indicate that D A T PROPCO LIMITED is in a nascent stage but already showing "symptoms of financial strain":

• Negative net assets ("financial anemia") show the company’s liabilities exceed its total assets, which is unsustainable long-term without capital injection or profit generation.
• Negative working capital ("poor short-term liquidity") suggests difficulty in meeting immediate financial obligations, risking supplier or creditor pressure.
• The fixed assets are likely real estate investments (consistent with SIC code 68209 - letting own or leased real estate), but current liabilities plus long-term creditors exceed these assets, which is a red flag for solvency.
• The absence of employees and operational data implies the company may be in an asset acquisition or holding phase rather than active trading, which is typical for property holding companies but still requires sound financing.
• The large long-term creditor balance may represent loans or mortgages on property, which is usual but requires careful servicing to avoid distress.
• Overall, the company has "structural weakness" in its balance sheet that must be addressed for a healthy financial future.

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4. Recommendations

To improve financial wellness and stabilize the company’s "financial health":

1. Capital Injection: The director or shareholders should consider injecting additional equity capital to restore positive net assets and reduce reliance on debt ("strengthen the financial bloodstream").
2. Debt Restructuring: Review terms of long-term creditors to negotiate better repayment schedules or interest rates, improving liquidity and solvency ("relieve cardiac stress").
3. Cash Flow Management: Implement strict monitoring of cash flows to ensure current liabilities can be met when due; consider short-term financing if necessary ("improving circulation").
4. Operational Planning: If the company intends to generate rental income, ensure leases and tenant agreements are in place promptly to create steady revenue ("healthy metabolism").
5. Regular Financial Reviews: Given the fragile position, frequent financial diagnostics and forecasting are essential to detect symptoms early and react swiftly.
6. Consider Professional Advice: Engage financial advisors or accountants to explore restructuring options and compliance with reporting requirements.

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