D C SCOTT PROPERTY LIMITED

Executive Summary

D C Scott Property Limited is currently facing significant solvency and liquidity challenges, characterized by negative net assets and persistent working capital deficits. While the company maintains compliance with filing requirements and holds stable fixed assets, the high level of creditor obligations relative to assets presents a material risk to financial stability. Further investigation into debt terms and operational cash flows is recommended to fully assess the company's viability.

D C SCOTT PROPERTY LIMITED - Analysis Report

Company Number: SC680609

Analysis Date: 2025-07-29 20:35 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and persistent net current liabilities, indicating solvency concerns. The financial structure reveals a reliance on significant long-term creditors exceeding total assets, raising questions about the company's ability to meet obligations as they fall due.

2. Key Concerns:

• Negative Net Assets: The company has net liabilities (£-6,366 as of 30 June 2024), deteriorating from previous years, signaling an erosion of shareholder equity.
• Working Capital Deficit: Substantial negative net current assets (£-41,952) reflect liquidity strain, with current liabilities far exceeding current assets, suggesting potential cash flow difficulties in meeting short-term obligations.
• High Long-Term Creditors: Creditors falling due after more than one year (£174,236) surpass total fixed assets, implying significant debt obligations that may not be fully secured by tangible assets.

3. Positive Indicators:

• Current Filing Compliance: The company has no overdue accounts or confirmation statements, indicating adherence to regulatory filing requirements.
• Stable Fixed Asset Base: Fixed assets have remained relatively stable (~£210,000), suggesting maintained investment in core property assets.
• Sole Control by Director: The sole director and 100% shareholder structure simplifies governance and decision-making processes.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment schedules, interest rates, and security arrangements.
• Review cash flow statements and any available management accounts to understand operational cash generation and short-term liquidity management.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not reflected in the filings.
• Assess the company's business plan and strategy for addressing negative equity and liquidity deficits, including any planned capital injections or asset disposals.
• Verify the director’s intentions and capacity to support the company financially if required.