D&G PROPERTIES (NORTH WEST) LIMITED

Executive Summary

D&G Properties (North West) Limited, a recently incorporated private company, currently exhibits high financial risk due to negative working capital and substantial director loans lacking formal repayment terms. While the company holds investment property assets and is compliant with filings, the lack of operational history and reliance on related party funding raise concerns about liquidity and solvency. Further due diligence on cash flows, director loan arrangements, and property valuations is essential to assess the company’s financial stability and sustainability.

D&G PROPERTIES (NORTH WEST) LIMITED - Analysis Report

Company Number: 15170160

Analysis Date: 2025-07-20 18:17 UTC

1. Risk Rating: HIGH

The company demonstrates a high risk primarily due to significant liabilities exceeding current assets, resulting in negative working capital and reliance on director loans with no formal repayment terms.

2. Key Concerns:

• Liquidity risk: Current liabilities (£30,824) exceed current assets (£21,865), producing a net current liability position of £8,959, which indicates potential short-term cash flow stress.
• Leverage and solvency: The company carries substantial long-term creditors (£258,340), including £119,350 owed to directors without interest or formal repayment schedules, raising concerns about financial stability and creditor reliance.
• Lack of operational history and financial performance data: Incorporated only in September 2023 with first accounts to September 2024, there is no profitability information or operational track record, making sustainability assessment difficult.

3. Positive Indicators:

• Asset base includes investment property valued at £280,051, which may provide collateral value.
• Compliance with filing obligations is up to date, with accounts and confirmation statement timely filed.
• Directors have significant shareholdings and appear engaged, indicating alignment of control and ownership.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loans, including any informal agreements or plans for repayment.
• Review cash flow forecasts to assess ability to service liabilities, especially given negative net current assets.
• Obtain management accounts or operational data to evaluate business model viability and income generation from property letting.
• Confirm the valuation methodology for investment property and any related risks or encumbrances.
• Verify absence of any director disqualifications or regulatory issues beyond Companies House filings.