DEANE’S DESIGN & DEVELOPMENTS LIMITED
Company Analysis
This analysis is opinion only and should not be interpreted as financial advice.
DEANE’S DESIGN & DEVELOPMENTS LIMITED - Analysis Report
Industry Classification
Deane’s Design & Developments Limited operates primarily within SIC Code 41100, classified as "Development of building projects." This sector involves companies engaged in the construction and development of real estate projects, including residential, commercial, and mixed-use developments. Key sector characteristics include high capital intensity, dependency on cyclical economic conditions, regulatory compliance (planning permissions, building regulations), and exposure to fluctuations in property markets and lending conditions.Relative Performance
The financials for Deane’s Design & Developments Limited reveal a company currently experiencing negative net assets (£-93,527 as of August 2024) and net current liabilities (£-98,050). This indicates a working capital deficit and balance sheet weakness. For a company in property development, this is not unusual at early stages or during active project phases when expenditures (land acquisition, construction costs) precede substantial revenue recognition. However, persistent negative equity is a risk factor and contrasts with more established developers who typically maintain positive net assets and stronger liquidity profiles.
The company’s asset base is modest (£692k current assets), dominated by stocks valued at £675,940, likely representing properties under development or inventory. Cash holdings are low (£14,415), which limits operational flexibility. Compared to broader sector norms, where medium to large developers often have substantial fixed assets and stronger equity cushions, this firm appears to be a micro or small scale player with relatively high leverage (creditors at £790k).
- Sector Trends Impact
The UK property development sector is currently affected by several macro trends:
- Rising interest rates have increased borrowing costs, squeezing margins for developers reliant on debt finance.
- Inflationary pressures have elevated construction input costs (materials, labour), impacting project profitability.
- Demand fluctuations due to economic uncertainty and shifts in buyer preferences (e.g., towards sustainability, flexible workspaces).
- Regulatory changes including stricter building standards and planning delays can prolong development timelines.
For Deane’s Design & Developments Limited, these trends may exacerbate liquidity pressures and challenge timely project delivery, especially given its small size and limited capital base.
- Competitive Positioning
Deane’s Design & Developments Limited can be classified as a niche or micro player within the building development sector based on size, turnover thresholds, and financial structure. The company’s negative equity and working capital shortfall contrast with more financially robust competitors who leverage scale, diversified project pipelines, and stronger capital reserves. Strengths potentially include flexibility and local market focus (based in Oundle, Peterborough), which can be advantageous in niche or bespoke development projects.
Weaknesses include limited financial resilience evidenced by persistent net liabilities, low cash reserves, and creditor reliance. The company employs only a few people (around 1 to 3), indicating a lean operation but also constraints on capacity and scalability. Without improved capitalization or project cash flow generation, the firm risks financial distress relative to sector peers.
executiveSummary
Deane’s Design & Developments Limited operates as a small-scale niche player in the UK building development sector, currently exhibiting negative net assets and working capital deficits typical of early-stage or highly leveraged developers. Sector-wide challenges such as rising costs and interest rates exacerbate financial pressures for this company, which contrasts with larger, more capitalized peers. Its local market focus and lean structure provide some agility, but significant balance sheet strengthening is needed to improve competitive standing.
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