DAWN MCMORROW LTD

Executive Summary

Dawn McMorrow Ltd is an active private limited company in the real estate sector exhibiting significant solvency and liquidity risks, with net liabilities worsening over the last four years. While the company remains compliant with filing obligations and holds substantial fixed assets, its ongoing negative equity and working capital deficits pose serious operational and financial stability concerns. Further due diligence is recommended to evaluate asset realizations, creditor terms, and cash flow sustainability.

DAWN MCMORROW LTD - Analysis Report

Company Number: 13121821

Analysis Date: 2025-07-20 11:54 UTC

1. Risk Rating: HIGH
   The company displays significant solvency and liquidity concerns, with persistent negative net assets and net current liabilities over multiple years. The scale of current and long-term liabilities relative to minimal current assets and negative shareholders’ funds indicates elevated financial risk.

2. Key Concerns:

• Negative Net Assets & Shareholders’ Funds: The company has reported net liabilities increasing from -£9,578 in 2021 to -£25,551 in 2024, indicating erosion of equity and financial distress.
• Large Current and Long-term Liabilities: Current liabilities (£293,843) and long-term creditors (£293,843) far exceed current assets (£224), resulting in negative working capital and poor liquidity.
• Minimal Operating Scale & Employee Base: The company operates with only one employee (director), suggesting limited operational capacity and potential dependency on external financing or owner funding.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
• Stable Fixed Asset Base: Fixed assets remain consistent at £268,380 over multiple years, likely representing real estate holdings aligned with the company’s SIC codes in property letting and trading.
• Micro-entity Accounting: The company benefits from simplified reporting, reducing administrative burden.

4. Due Diligence Notes:

• Review detailed composition and valuation of fixed assets to confirm their realizable value and potential to cover liabilities.
• Investigate nature and maturity profile of creditors, particularly long-term creditors, to assess debt servicing capability and refinancing risks.
• Examine cash flows and operational income streams to evaluate sustainability and ability to improve liquidity.
• Assess director’s plans or strategies to address persistent negative equity and working capital deficits.
• Confirm absence of director disqualifications or compliance issues beyond financial filings.