D WRIGHT PROPERTIES LTD

Executive Summary

D Wright Properties Ltd exhibits a high-risk profile primarily driven by significant liquidity shortfalls and heavy creditor obligations, including substantial related party debt. While regulatory compliance and asset growth are positive factors, the company’s financial structure indicates potential solvency challenges. Further due diligence on related party transactions and cash flow viability is essential before investment consideration.

D WRIGHT PROPERTIES LTD - Analysis Report

Company Number: 12476164

Analysis Date: 2025-07-20 11:46 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity concerns due to large current liabilities exceeding current assets by a substantial margin and heavy long-term creditor obligations. The relatively low net asset position despite sizable fixed assets indicates a fragile equity base.

2. Key Concerns:

• Liquidity Deficit: Net current liabilities of £218,132 against current assets of just £6,643 suggest the company may struggle to meet short-term obligations as they fall due.
• High Long-Term Debt: Creditors due after more than one year total £642,106, which heavily leverages the company’s asset base and increases default risk.
• Related Party Debt: £199,182 is owed to a related company controlled by the director, raising potential conflict of interest and questioning the arm’s length nature of financing arrangements.

3. Positive Indicators:

• Growing Net Assets: Net assets increased from £1,609 in 2022 to £20,458 in 2023, indicating some improvement in equity, albeit still at a low absolute level.
• No Overdue Filings: The company is current with accounts and confirmation statement filings, reflecting compliance with regulatory reporting requirements.
• Fixed Asset Base: Ownership of fixed assets worth £885,054 provides collateral value, important for creditor negotiations or refinancing options.

4. Due Diligence Notes:

• Examine the nature and terms of the related party loan from Value Education Ltd, including repayment schedules, interest rates, and any security.
• Review cash flow statements and management forecasts to assess ability to service current and long-term liabilities.
• Investigate reasons for persistent negative working capital despite asset growth and assess operational cash generation capacity.
• Confirm director background and any associated party transactions for governance and conflict of interest risks.