DHB PROPERTY GROUP LTD

Executive Summary

DHB Property Group Ltd exhibits weak financial strength with persistent negative net assets and working capital deficits since incorporation. The company currently lacks the financial resources or asset base to service debt, indicating a high credit risk. Without significant improvement in liquidity or capital structure, credit approval is not recommended.

DHB PROPERTY GROUP LTD - Analysis Report

Company Number: SC748583

Analysis Date: 2025-07-29 13:13 UTC

1. Credit Opinion: DECLINE
   DHB Property Group Ltd is a recently incorporated private limited company (since October 2022) engaged in real estate activities. Despite being active and compliant with filings, its financial position is weak with persistent negative net assets and net current liabilities over the last two years. The company shows no signs of profitability or capital injection sufficient to cover liabilities. The directors’ support is mentioned but there is no evidence of sustainable cash flow or asset backing to service debt obligations. Given the negative equity position and lack of financial depth, the risk of default is high for any credit facility.

2. Financial Strength:
   The balance sheet indicates negative shareholders’ funds of approximately £10,700 as at October 2024, worsening slightly from £8,681 the previous year. Current liabilities exceed current assets by the same amount, showing a working capital deficit. The company holds no fixed assets or other tangible assets to offset these liabilities. The company is likely relying on director support or external funding to operate. The negative net assets position is a significant credit weakness, indicating poor financial resilience and no buffer to absorb trading losses.

3. Cash Flow Assessment:
   No income statement or cash flow statement was filed, but the negative net current assets imply ongoing liquidity strain. The company’s inability to cover short-term liabilities with current assets raises concerns over its operational cash flow sufficiency. With only two employees and minimal financial scale, the company’s working capital cycle might be tight, requiring continual director funding or external support. Without evidence of positive cash inflows or asset sales, liquidity risk is material.

4. Monitoring Points:

• Improvement in net current assets and shareholders’ funds to positive territory
• Evidence of sustainable cash inflows or capital injections from directors or investors
• Reduction or control of short-term liabilities
• Timely filing of full accounts including profit & loss and cash flow statements for better transparency
• Any changes in ownership or director involvement that may impact financial support