DAYTONA PROPERTY ASSETS LIMITED

Executive Summary

Daytona Property Assets Limited is a newly incorporated micro entity engaged in real estate letting but currently shows negative equity and working capital deficiencies. The company’s balance sheet reflects high leverage and limited liquidity, posing significant credit risk. Without evidence of improved financial stability or cash flow generation, the company is not recommended for credit facilities at this stage.

DAYTONA PROPERTY ASSETS LIMITED - Analysis Report

Company Number: 14554120

Analysis Date: 2025-07-29 19:39 UTC

1. Credit Opinion: DECLINE
   Daytona Property Assets Limited exhibits negative net assets (£-5,830) and net current liabilities (£-12,794) at the latest year-end, indicating a weak financial position. The company is relatively new (incorporated December 2022) and classified as a micro entity with minimal trading history and no employees, which limits evidence of operational stability or cash generation capability. The significant long-term creditor balance (£184,113) outweighs total assets, suggesting reliance on external funding that may not be sustainable. Given the negative equity and working capital deficit, the company currently lacks the financial strength to service debt obligations reliably.

2. Financial Strength:
   The balance sheet shows fixed assets of £191,077, which are likely property-related given the SIC code for real estate letting activities. However, current assets are minimal at £2,686 versus current liabilities of £15,480, resulting in negative working capital. The larger long-term liabilities of £184,113 push net liabilities below zero. This indicates the company is highly leveraged with insufficient equity buffer to absorb losses or economic shocks. The negative shareholders’ funds highlight capital erosion, which is a red flag for credit risk.

3. Cash Flow Assessment:
   With no employees and minimal current assets, the company’s liquidity position appears constrained. Negative net current assets imply a potential inability to meet short-term obligations without additional funding or asset sales. The company’s cash flow generation is uncertain due to lack of profit and loss data and short operating history. The presence of large creditors suggests existing debt servicing commitments which may strain cash flows further. Overall, liquidity risk is elevated, limiting safe extension of credit.

4. Monitoring Points:

• Track subsequent filings for improvement in net assets and working capital.
• Monitor creditor balances and maturity profiles to assess refinancing risk.
• Review any profit and loss data or cash flow statements when available to evaluate operational cash generation.
• Confirm director’s plans for capital injection or debt restructuring to restore financial health.
• Watch for timely filing of accounts and confirmation statements to ensure compliance and transparency.