DBL PROPERTY DEVELOPMENT LTD

Executive Summary

DBL Property Development Ltd is currently in a weak financial position, with negative net assets driven by significant long-term liabilities exceeding current assets. The company lacks evidence of growth or cash flow generation, which undermines its ability to service debt and meet credit obligations. Given these factors, credit extension is not recommended without significant improvement in financial health.

DBL PROPERTY DEVELOPMENT LTD - Analysis Report

Company Number: 13241181

Analysis Date: 2025-07-20 17:47 UTC

1. Credit Opinion: DECLINE
   DBL Property Development Ltd demonstrates a concerning financial position for credit extension. Despite being active and filing timely accounts, the company shows a negative net asset position (£-187,111) in 2024, indicating liabilities exceed assets. The substantial creditor balance due after one year (£375,097) raises questions about long-term solvency. The lack of growth in current assets and persistent negative equity suggest limited financial flexibility to service new debt. Without evidence of profitability or cash flow generation, extending credit would pose a high risk.

2. Financial Strength:
   The company's balance sheet reveals current assets of £188,436 against current liabilities of only £450, which would normally be a positive short-term liquidity indicator. However, the major issue lies in the long-term creditors (£375,097), which exceed current assets and result in negative shareholders’ funds. The micro-entity status limits disclosure but the negative net assets and growing long-term liabilities highlight weak financial strength and inadequate capitalisation for business risks.

3. Cash Flow Assessment:
   With only one reported employee and no significant changes in current assets over three years, the company appears stagnant operationally. The minimal current liabilities and unchanging current assets imply limited working capital turnover. The negative net asset position suggests that cash inflows are insufficient to cover long-term obligations. No detailed cash flow statement is provided, but the available data raises concern over liquidity sustainability.

4. Monitoring Points:

• Watch for changes in creditor balances, especially long-term liabilities.
• Monitor net asset trends for improvement or further deterioration.
• Review any subsequent profitability indicators or cash flow enhancements.
• Track director actions or capital injections that may stabilize finances.
• Observe timely filing of future accounts and confirmation statements to ensure compliance.