D4 PROPERTY LTD

Executive Summary

D4 Property Ltd shows high financial risk primarily due to substantial negative working capital and negative net assets within its initial two years of operation. While the company is compliant with filing requirements and benefits from clear ownership, its current financial position raises concerns about liquidity and solvency. Further detailed investigation into asset quality and creditor obligations is recommended to assess viability.

D4 PROPERTY LTD - Analysis Report

Company Number: NI691153

Analysis Date: 2025-07-20 15:20 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by negative net assets and substantial current liabilities exceeding current assets by over £218,000 as of the latest accounts. Such financial distress signals elevated risk in meeting short-term obligations.

2. Key Concerns:

• Negative Working Capital: Current liabilities of £222,794 vastly exceed current assets of £4,598, indicating potential cash flow difficulties.
• Negative Net Assets: The company’s total net assets and shareholders’ funds are negative (£8,396), reflecting erosion of equity and solvency risk.
• Limited Operating History: Incorporated in September 2022 with only two years of financial data, the business is still in early development with unproven operational stability and no audit performed.

3. Positive Indicators:

• Compliance: The company is current on all statutory filings including accounts and confirmation statements, reducing regulatory compliance risk.
• Ownership and Control: Single shareholder/director holding 75-100% ownership and voting rights may enable swift decision-making and clarity of control.
• Asset Base: Fixed assets of £209,800 provide some tangible backing, potentially real estate given the SIC codes related to property management and trading.

4. Due Diligence Notes:

• Investigate nature and valuation of fixed assets to confirm realizable value and any encumbrances.
• Review details behind the elevated current liabilities to understand creditor composition and payment terms.
• Assess business model sustainability and revenue streams to evaluate if negative working capital is temporary or structural.
• Confirm related party transactions or director loans that may impact financial position.
• Explore cash flow forecasts and plans for capital injection or debt restructuring.