DEK PROPERTIES LTD

Executive Summary

DEK PROPERTIES LTD exhibits a high risk profile due to its persistent negative net current assets, negative equity, and substantial reliance on director and bank loans. While the company holds a stable investment property asset and maintains regulatory compliance, liquidity constraints and solvency risks warrant close scrutiny. Further investigation into debt terms, cash flow management, and asset realizability is essential before considering investment.

DEK PROPERTIES LTD - Analysis Report

Company Number: 12844904

Analysis Date: 2025-07-20 16:07 UTC

1. Risk Rating: HIGH
   DEK PROPERTIES LTD displays significant solvency and liquidity concerns, with persistent negative net current assets and net liabilities despite holding investment property assets. The company’s cash position is minimal relative to its short-term liabilities, indicating potential difficulties in meeting immediate obligations.

2. Key Concerns:

• Negative Net Current Assets: The company has a consistent working capital deficit (~£173k), meaning current liabilities (£174k) far exceed current assets (cash ~£1.4k), signaling liquidity stress.
• Net Liabilities Position: Shareholders’ funds and net assets are negative (£-5.8k), indicating that total liabilities exceed total assets, a warning sign of insolvency risk.
• High Director Loans and Bank Debt: Current liabilities include substantial director loans (£172.9k) and long-term bank loans (£275k), suggesting reliance on external/internal funding with potential repayment challenges.

3. Positive Indicators:

• Stable Investment Property Asset Value: The investment property is valued at £442k with no impairment or revaluation losses reported year-on-year, providing a tangible asset base.
• Timely Filing Compliance: The company is up to date with accounts and confirmation statement filings, reducing regulatory compliance risk.
• Experienced Directors: Both directors have been in place since incorporation and hold relevant roles, which may provide operational continuity.

4. Due Diligence Notes:

• Investigate the terms, interest rates, and repayment schedules of the director loans and bank loans to assess financial strain and refinancing risk.
• Review cash flow forecasts and management plans to understand how the company intends to resolve its working capital deficit and negative equity position.
• Confirm valuation methodology and marketability of the investment property to evaluate its liquidation potential in distress scenarios.
• Assess whether there are any contingent liabilities or off-balance-sheet obligations not disclosed in the accounts.
• Clarify the absence of employees and operational activity to determine if the company is a holding entity or engaged in active property letting.