DEAN GARDENS LTD

Executive Summary

DEAN GARDENS LTD, a recently incorporated property investment company, demonstrates significant solvency and liquidity risks as evidenced by its negative net assets and high long-term liabilities exceeding fixed assets. While current with regulatory filings and controlled by a small group of directors, the company’s financial position suggests reliance on debt and limited cash resources, warranting further scrutiny of its creditor terms and cash flow management. Investors should exercise caution and seek detailed operational and financial plans before engagement.

DEAN GARDENS LTD - Analysis Report

Company Number: 15102178

Analysis Date: 2025-07-29 15:31 UTC

1. Risk Rating: HIGH
   The company shows significant solvency concerns with negative net assets (£-15,490) and substantial creditors due after one year (£471,925), which exceed fixed assets. This indicates potential challenges in meeting long-term obligations and financial instability.

2. Key Concerns:

   • Negative Equity Position: Shareholders’ funds are negative, reflecting accumulated losses or undercapitalization that could impair the company’s ability to absorb financial shocks.
   • High Long-Term Liabilities Relative to Assets: The company’s fixed assets (£455,419) are almost entirely offset by long-term creditors (£471,925), suggesting leverage risk and possible over-reliance on debt financing.
   • Minimal Current Assets and Working Capital: Current assets stand at only £1,364 with current liabilities at £471,925 (though the report shows creditors due within one year as -350, which may be a data inconsistency; however, the net current assets are positive but very low at £1,014), indicating very limited liquidity to cover short-term obligations.

3. Positive Indicators:

   • No Overdue Filings: The company is current with both accounts and confirmation statement filings, reflecting regulatory compliance and good governance practices.
   • Active Status and Recent Incorporation: Being newly incorporated in August 2023, the company is in early operational stages which may explain initial financial structuring and investment phases.
   • Clear Ownership and Control: Two directors with significant control are identified, which may facilitate straightforward decision-making and accountability.

4. Due Diligence Notes:

   • Clarify Nature and Terms of Long-Term Creditors: Investigate the composition, maturity, and interest terms of the £471,925 creditors to assess refinancing or default risks.
   • Review Cash Flow and Operational Plans: Given the minimal current assets and negative equity, it is important to understand the company’s cash generation strategy and capital injection plans.
   • Confirm Accuracy of Current Liabilities and Working Capital Figures: The reported small current liabilities figure (-£350) appears inconsistent with the large creditor amounts; verifying this data is essential.
   • Examine Related Party Transactions: Given the concentrated ownership and control, check for any related party loans or transactions that may affect financial stability.