D & T PROPERTY INVESTMENT SOLUTIONS LTD

Executive Summary

D & T Property Investment Solutions Ltd maintains a strong asset base and growing equity, but faces short-term liquidity challenges evidenced by negative working capital and declining cash balances. The company should focus on improving cash flow management and easing short-term liabilities to reinforce financial stability. With these measures, the outlook for sustainable financial health is cautiously optimistic.

D & T PROPERTY INVESTMENT SOLUTIONS LTD - Analysis Report

Company Number: 12477739

Analysis Date: 2025-07-20 11:44 UTC

Financial Health Assessment Report for D & T PROPERTY INVESTMENT SOLUTIONS LTD
Date of Assessment: 2024-12-31 (based on latest accounts as at 31-03-2024)

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1. Financial Health Score: C

• Explanation: The company shows stable asset holdings with consistent equity growth, but exhibits symptoms of liquidity strain due to negative working capital and relatively high short-term liabilities against cash reserves. The financial structure is moderately sound but requires attention to cash flow management to avoid distress.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Cash at Bank	24,175	Reduced significantly from prior year (£60,658), indicating tighter liquidity or higher cash usage.
Current Liabilities	131,067	High short-term obligations, nearly five times the cash available, indicating potential liquidity risk.
Net Current Assets	-106,892	Negative working capital ("symptom of strain") suggests the company owes more short-term than it holds.
Fixed Assets (Tangible)	225,927	Stable fixed asset base, mostly land and buildings, indicating long-term investment in property.
Long-Term Debt	29,368	Reduced from prior year (£88,107), showing some debt repayment or refinancing.
Net Assets / Shareholders’ Funds	89,667	Positive and increasing equity, indicating retained earnings and capital buffer.
Profit and Loss Reserve	89,567	Reflects accumulated profits, growing steadily year on year, a good sign of underlying profitability.

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3. Diagnosis: Financial Symptoms and Underlying Health

• Liquidity and Cash Flow: The company exhibits a "weak pulse" in liquidity. Cash reserves have dropped by over 60% year-on-year, while current liabilities remain high. Negative net current assets are a clear symptom of working capital deficiency, suggesting the company may struggle to meet immediate obligations without additional financing or improved cash flow.

• Asset Base and Solvency: The company’s tangible fixed assets remain strong and stable, primarily property-related, which is typical for a real estate investment company. The net assets have increased, indicating that despite liquidity issues, the company maintains solvency and a positive equity position.

• Debt Management: The significant reduction in long-term debt indicates active management of financial obligations, which is a positive sign akin to "reducing patient burden." However, short-term creditors remain high, and tax and social security liabilities have increased slightly, which warrants monitoring.

• Profitability and Reserves: Consistent growth in retained profits suggests the company is generating surplus income over time, which is the "healthy metabolism" of the business. However, the absence of detailed turnover or profit figures limits the depth of profitability analysis.

• Operational Capacity: Employing 2 staff members indicates a small operation, consistent with the company size and nature of business. The company benefits from a stable management structure with a single active director.

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4. Recommendations: Prescriptions for Financial Wellness

1. Improve Working Capital Management

   • Review and accelerate debtor collections if applicable.
   • Negotiate extended payment terms with creditors to ease short-term cash outflows.
   • Consider short-term financing options if liquidity pressure persists but ensure cost-effectiveness.

2. Cash Flow Monitoring and Forecasting

   • Implement rigorous cash flow forecasting to anticipate periods of tight liquidity.
   • Maintain a cash buffer to avoid the risk of insolvency from unexpected expenses.

3. Debt Strategy

   • Continue reducing long-term liabilities prudently to strengthen the balance sheet.
   • Explore refinancing options to convert some short-term liabilities into longer-term debt, reducing immediate pressure.

4. Operational Efficiency

   • Evaluate operational costs and employee productivity to ensure resources are optimally deployed.
   • Leverage property assets effectively, potentially exploring rental income improvements, to boost cash inflows.

5. Regular Financial Health Checks

   • Conduct quarterly financial reviews focusing on liquidity ratios and cash flow health to detect early symptoms of distress.
   • Engage with a financial advisor or accountant for detailed profitability and tax planning analysis.

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Summary Using Medical Analogy

D & T PROPERTY INVESTMENT SOLUTIONS LTD has a sturdy "skeletal structure" with strong fixed assets and growing equity, indicating good long-term health. However, it currently shows "symptoms of liquidity distress," with negative working capital and reduced cash reserves that could threaten short-term survival if unaddressed. With timely interventions—especially improving cash flow and managing short-term liabilities—this company can restore "healthy circulation" to its financial system and sustain growth.

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