Company Number: 13952054

Analysis Date: 2025-07-20 11:14 UTC

Financial Health Assessment: DOUGALL PROPERTIES LIMITED

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with a negative net asset position and working capital deficiency. While it is still operational and has significant fixed assets, its liabilities exceed its assets, indicating a weak balance sheet. Cash flow and liquidity appear constrained, which raises concerns about short-term financial resilience.

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2. Key Vital Signs

Metric	31-Mar-2024	Interpretation
Fixed Assets	£181,805	Significant investment in long-term assets, indicating business has tangible property or equipment.
Current Assets	£88,091	Moderate liquid assets available.
Current Liabilities	£93,560	Short-term debts slightly exceed current assets, indicating working capital deficit.
Net Current Assets	-£5,469	Negative working capital ("symptom of liquidity strain"). The company may struggle to meet short-term obligations.
Creditors > 1 year	£177,657	Large long-term liabilities, raising concerns about solvency.
Net Assets (Total Equity)	-£1,321	Negative net worth ("symptom of balance sheet distress"), indicating liabilities exceed assets.
Shareholders' Funds	-£1,321	Reflects accumulated losses or capital erosion.

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3. Diagnosis

DOUGALL PROPERTIES LIMITED is in the early stages of operation (incorporated 2022) and classified as a micro-entity. The company has invested in fixed assets, likely linked to its real estate agency activities. However, the balance sheet presents a "symptom of distress" — a negative net asset position and negative working capital suggest that the company is relying on creditor funding beyond what its current assets can cover. This could be due to borrowing to finance asset acquisition or operating expenses.

Negative shareholders' funds imply that the company has either incurred losses or has not yet built sufficient equity. The presence of significant long-term creditors could indicate loans or mortgages secured against assets. While this is common in real estate businesses, the mismatch between assets and liabilities signals a fragile financial health status.

The liquidity position is precarious — the company may face difficulties in meeting short-term obligations without additional cash inflow or refinancing. The micro-entity status and exemption from audit limit financial disclosure depth, so the full financial dynamics are not visible, but the available data points to caution.

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4. Recommendations

• Improve Liquidity: Consider negotiating terms with creditors to extend payment periods or reduce short-term liabilities. Explore short-term financing options or increase cash reserves to cover working capital needs.

• Strengthen Equity Base: Inject additional capital from shareholders or through external investors to restore positive net assets, improving solvency and creditor confidence.

• Cost Management: Review operating expenses closely to control cash outflows and improve profitability, reducing reliance on debt.

• Asset Utilization: Evaluate fixed assets to ensure they generate adequate returns. If some assets are non-essential, consider disposal to raise cash.

• Financial Monitoring: Implement regular cash flow forecasting to anticipate liquidity issues early ("vital sign checks") and take proactive measures.

• Seek Professional Advice: Engage with financial advisors specializing in real estate businesses to optimize capital structure and operational efficiency.

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