DEEGAN PROPERTY LTD

Executive Summary

DEEGAN PROPERTY LTD is in a generally strong financial position with improving liquidity, solid cash reserves, and growing shareholders' funds. The company shows healthy operational performance but should focus on managing rising debtors and current liabilities to prevent future cash flow strain. With prudent financial management, the outlook remains positive.

View Full Analysis Report →

Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

DEEGAN PROPERTY LTD - Analysis Report

Company Number: 13755737

Analysis Date: 2025-07-29 20:52 UTC

Financial Health Assessment of DEEGAN PROPERTY LTD


1. Financial Health Score: B

Explanation:
DEEGAN PROPERTY LTD exhibits solid financial footing with improving net current assets and shareholder funds over recent years. The company maintains a healthy cash balance relative to liabilities, signaling good liquidity. However, there are signs of moderate leverage and reliance on short-term creditors, indicating a need for cautious monitoring. The overall grade "B" reflects a generally healthy financial state with room for strengthening working capital management and reducing short-term liabilities.


2. Key Vital Signs

Metric 2024 (£) Interpretation
Current Assets 89,659 Increase in current assets is a positive sign, reflecting better liquidity and asset management.
Cash 79,721 Strong cash position indicates good short-term financial health, a "healthy pulse" of cash flow.
Debtors 9,938 Rising trade debtors may indicate increased sales or potential collection risk if prolonged.
Current Liabilities 67,216 Slightly increasing liabilities require monitoring, could signal "symptoms of financial stress" if unchecked.
Net Current Assets 22,443 Positive working capital shows the company can cover short-term obligations comfortably.
Total Assets Less Current Liabilities 25,527 Indicates net asset value supporting the company’s solvency.
Shareholders’ Funds 25,527 Increasing equity base shows retained earnings growth and financial resilience.
Tangible Fixed Assets 3,084 Small fixed asset base typical for an agency; depreciation consistent with asset usage.
Trade Creditors 141 Low trade creditors indicate timely payments to suppliers, reducing risk of strained relations.

3. Diagnosis: Financial Condition and Underlying Health

DEEGAN PROPERTY LTD shows signs of robust financial health akin to a "patient with a strong heart rate and clear lungs." The company's liquidity is particularly strong, with cash comprising nearly 89% of its current assets, a very healthy indicator of its ability to meet immediate obligations without stress.

The working capital (net current assets) has increased substantially from £5,978 in 2023 to £22,443 in 2024, suggesting improved short-term financial stability and operational efficiency. This "healthy blood pressure" in financial terms means the company can comfortably fund day-to-day operations and absorb small shocks.

The increase in debtors from £190 to £9,938 signals growing business activity but also introduces a mild "symptom" of collection risk. Management should ensure debtor days remain controlled to avoid cash flow issues.

Current liabilities have increased slightly but remain well-covered by current assets and cash on hand, which shows no immediate "symptoms of distress." However, the company should watch the growth in taxation and social security creditors (£23,798) and other creditors (£43,277), which together comprise most of the liabilities. This indicates some reliance on short-term creditor financing which could be a future strain if not managed prudently.

The steady increase in shareholders' funds from £10,090 in 2023 to £25,527 in 2024, primarily through retained earnings, is an encouraging sign of profitability and reinvestment, akin to a body building strength and reserves.


4. Recommendations: Prescriptions for Financial Wellness

  • Enhance Debtor Management:
    Tighten credit control procedures to reduce debtor days and convert receivables into cash faster. This will improve cash flow and reduce risk of future liquidity "flare-ups."

  • Monitor and Manage Liabilities:
    Regularly review creditor terms and payments, especially taxation and social security liabilities, to avoid penalties or cash flow squeeze. Consider negotiating longer payment terms where possible to smooth short-term cash demands.

  • Build Fixed Asset Base Cautiously:
    While current tangible assets are minimal, consider investing prudently in necessary equipment to support growth without overleveraging.

  • Maintain Healthy Cash Reserves:
    Continue to "keep the pulse strong" by maintaining a robust cash buffer to absorb unexpected expenses or downturns in the real estate market.

  • Regular Financial Reviews:
    Implement quarterly financial check-ups to monitor vital signs such as liquidity ratios, working capital trends, and profitability, ensuring early detection of any financial ailments.

  • Plan for Growth and Scalability:
    As the company grows, consider diversifying income streams or improving operational efficiencies to sustain the upward trend in equity and working capital.



More Company Information


Follow Company
  • Receive an alert email on changes to financial status
  • Early indications of liquidity problems
  • Warns when company reporting is overdue
  • Free service, no spam emails
  • Follow this company