D BODY PROPERTY DEVELOPMENTS LIMITED

Executive Summary

D Body Property Developments Limited exhibits significant liquidity strain with a large working capital deficit and minimal equity buffer, despite holding substantial fixed assets. The company’s short trading history and deteriorating current liability position heighten credit risk, rendering it unsuitable for unsecured lending at present. Close monitoring of cash flows and creditor balances is critical before any credit exposure is considered.

D BODY PROPERTY DEVELOPMENTS LIMITED - Analysis Report

Company Number: 13536608

Analysis Date: 2025-07-20 16:48 UTC

1. Credit Opinion: DECLINE
   D Body Property Developments Limited shows significant liquidity stress with current liabilities (£483,486) far exceeding current assets (£60,349) as at 31 July 2024, resulting in a large negative net working capital position (-£423,137). This raises serious short-term repayment concerns. Although the company holds tangible fixed assets (£436,045) mainly in land and buildings, these are illiquid and may not be readily available to cover immediate liabilities. The negative net assets position just one year ago has only marginally improved to a small positive equity (£12,908), indicating limited financial cushion. Given these factors, and the company's short operating history since incorporation in 2021, the risk of default on credit facilities is high without additional security or guarantees.

2. Financial Strength:
   The balance sheet shows a recent acquisition of tangible fixed assets (£436k), likely property development sites, which is typical for this sector. However, the company's working capital deficit worsened significantly in 2024 compared to 2023, indicating increasing reliance on creditor funding or short-term debt. Shareholders' funds remain minimal at £12,908, reflecting very modest accumulated profits (profit and loss reserves £12,836) and a small issued share capital (£72). The company employs only 2 staff, indicating a micro to small scale operation. The financial statements are unaudited, prepared under the small companies regime, and show no depreciation on buildings, reflecting a conservative asset valuation approach.

3. Cash Flow Assessment:
   Cash balances have declined from £25,923 in 2023 to £15,374 in 2024, exacerbating liquidity issues. Debtors remain steady (~£45k) but are insufficient to cover immediate creditor demands, which more than doubled to £483k in 2024. The large increase in current liabilities suggests the company may be deferring payments or accruing short-term debts, which is a warning sign. The absence of positive net current assets indicates the company could struggle to meet short-term obligations without additional financing or asset disposals. No information is provided on operating cash flows or profitability, but the worsening working capital position implies negative cash flow from operations.

4. Monitoring Points:

• Liquidity ratios (current ratio, quick ratio) to track short-term solvency improvements or deterioration
• Movement in creditor balances and ageing to assess payment behavior and creditor confidence
• Progress on development projects and resulting revenue recognition to validate asset realizable value
• Profitability and cash flow trends in future accounting periods to confirm operational viability
• Director and shareholder support or potential capital injections to alleviate liquidity constraints