DANSDOM PROPERTIES LTD

Executive Summary

Dansdom Properties Ltd currently exhibits a weak financial position with negative net assets and poor liquidity due to high debt levels and no cash reserves. The company’s dependence on director and bank loans, combined with negative working capital, presents significant credit risk, leading to a recommendation to decline credit facilities at this time. Ongoing monitoring should focus on cash flow improvements and balance sheet strengthening before reconsideration.

DANSDOM PROPERTIES LTD - Analysis Report

Company Number: 13888370

Analysis Date: 2025-07-20 14:37 UTC

1. Credit Opinion: DECLINE
   Dansdom Properties Ltd presents significant credit risk primarily due to its negative equity position and persistent working capital deficits. The company shows net liabilities of approximately £46,625 and net current liabilities of £49,177 as of the latest accounts. Its current liabilities substantially exceed current assets, indicating poor short-term liquidity and an inability to meet immediate obligations without external support. The company’s financial structure is heavily reliant on long-term bank loans (£89,204) and director loans (£65,282), which heighten refinancing and repayment risk. The absence of cash at year-end and dependence on debt funding raise concerns about the company’s capacity to service debt or sustain operations during adverse conditions. The business is relatively new (incorporated 2022) with minimal operational history, limiting visibility on future performance or management track record beyond director ownership. Overall, the weak balance sheet and cash flow constraints warrant a decline of credit facilities at this stage.

2. Financial Strength:
   The balance sheet shows tangible fixed assets valued at £91,756 with no depreciation charged, indicating property ownership but no amortization expense. However, the company is deeply insolvent on a net asset basis with shareholders’ funds negative by £46,625. Current assets (£16,105 debtors, no cash) are insufficient to cover current liabilities (£89,204 loans from director + £65,282 short-term loans). The company’s total liabilities exceed assets by a wide margin, reflecting a capital deficiency and high leverage. The reliance on director loans and bank loans for funding, without equity buffer, weakens financial resilience. No retained earnings or profit reserves exist, showing cumulative losses or initial investment shortfall.

3. Cash Flow Assessment:
   The company held zero cash at the balance sheet date, despite having £16,105 in debtors, which suggests delayed collections or related party balances. Negative net current assets of £49,177 highlight a working capital shortfall, implying the company struggles to meet short-term liabilities without additional financing. There is no evidence of operational cash generation or profitability in the accounts. The cash flow position is precarious, heavily dependent on director loans and external bank loans to finance ongoing activities. Without an improvement in cash inflows or reduction in liabilities, liquidity risk remains elevated.

4. Monitoring Points:

• Monitor quarterly cash flow and debtor collection performance to assess liquidity improvements.
• Track any injection of equity capital or reduction in director loans to strengthen the balance sheet.
• Review bank loan covenant compliance and refinancing plans to mitigate refinancing risk.
• Observe any operational profit emergence or cost control measures to improve sustainability.
• Watch for timely filing of accounts and confirmation statements to assess governance and compliance.