Company Number: 14284145

Analysis Date: 2025-07-20 17:59 UTC

1. Risk Rating: LOW

Justification: Dayn Properties Ltd is a recently incorporated private limited company (August 2022) engaged in building project development. The latest financial statements show a positive net current asset position (£2,641) and shareholders’ funds have increased significantly from £392 in 2023 to £3,408 in 2024, indicating improved equity and financial position. There are no overdue filings or indications of insolvency, and the company is not in liquidation or administration.

2. Key Concerns:

• Limited financial history: With only two full years of financial data since incorporation, the company’s operational track record is short, which limits trend analysis and forecasting reliability.
• Modest cash balances: Although cash increased slightly to £4,762, the absolute level is low relative to potential project scale in property development, which could constrain liquidity if project financing or payments are delayed.
• Corporation tax creditor: The company carries a corporation tax liability of £2,052 as at August 2024, which requires ongoing monitoring to ensure tax payments remain on schedule and do not affect cash flow.

3. Positive Indicators:

• Improved net current assets and equity: The increase in net current assets from £392 to £2,641 and shareholders’ funds from £392 to £3,408 year-on-year demonstrates strengthening financial stability.
• No overdue filings or compliance issues: Accounts and confirmation statements are up to date, reflecting good governance and regulatory compliance.
• Ownership and control transparency: The single director structure and clear ownership reduces complexity in governance and potential control disputes.

4. Due Diligence Notes:

• Review detailed cash flow statements and project pipeline to assess liquidity sufficiency for ongoing and future development projects.
• Investigate the source of the increase in retained earnings and the nature of transactions with associates (debtor of £714), to understand related party exposures.
• Confirm the company’s tax payment schedule and any deferred tax liabilities or risks, given the corporation tax creditor balance.
• Assess the company’s strategy and business model sustainability in the competitive building development sector, considering the minimal fixed assets and employee base.