DAYJAH DEVELOPMENTS LTD

Executive Summary

DAYJAH DEVELOPMENTS LTD exhibits a highly leveraged financial position with fixed assets fully funded by long-term liabilities and minimal net assets, raising solvency and liquidity concerns. While regulatory compliance is up to date and governance appears sound, the lack of employees and operational details suggest limited business activity. Further investigation into debt structure and cash flows is recommended to better assess financial stability.

DAYJAH DEVELOPMENTS LTD - Analysis Report

Company Number: 13585903

Analysis Date: 2025-07-20 15:17 UTC

1. Risk Rating: HIGH
   The company shows a highly leveraged balance sheet with fixed assets fully matched by long-term liabilities, resulting in negligible net assets and working capital. This indicates potential solvency and liquidity challenges.

2. Key Concerns:

• Solvency Risk: The balance sheet shows fixed assets of £249,950 matched by an equal amount of long-term creditors, leaving net assets just £522, which is extremely low for the asset base and suggests high leverage.
• Liquidity Concerns: Current liabilities almost equal current assets, leaving net current assets barely positive at £522, indicating very limited short-term liquidity cushion to meet operational or unexpected cash needs.
• Operational Stability: The company has no employees and limited financial activity (micro-entity status) since incorporation in 2021, which may imply minimal ongoing operations or revenue generation.

3. Positive Indicators:

• The company is compliant with filing deadlines for both accounts and confirmation statements, indicating good regulatory adherence.
• Directors and persons with significant control are clearly identified with no disqualifications or adverse records noted.
• The fixed asset value has remained stable over the last 3 years, indicating no impairment or disposals which may suggest asset stability.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities equal to the fixed assets to understand debt servicing obligations and potential refinancing risks.
• Review the company’s cash flow statements or management accounts (if available) to assess operating cash generation and working capital management.
• Clarify the business model and revenue streams since no employees are reported and net assets are minimal despite substantial fixed assets.
• Confirm the valuation and ownership status of the fixed assets to assess potential for realization in case of financial distress.