DPH DEVELOPMENTS LTD

Executive Summary

DPH DEVELOPMENTS LTD has a solid fixed asset base but exhibits significant working capital deficits, raising concerns about short-term liquidity and operational cash flow. While net assets have marginally improved, the company’s ability to service debt relies heavily on asset realizations or external financing. Credit approval should be conditional with strict ongoing monitoring of liquidity and financial health indicators.

DPH DEVELOPMENTS LTD - Analysis Report

Company Number: 12795871

Analysis Date: 2025-07-29 19:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DPH DEVELOPMENTS LTD operates in the real estate sector with a micro-entity profile. While the company holds significant fixed assets (£515,891), it consistently reports substantial net current liabilities exceeding £500,000, indicating working capital deficits. The net assets have improved slightly over time but remain modest at £7,840 as of the latest accounts. The company’s ability to meet short-term liabilities without additional financing is questionable. Approval would be conditional on monitoring liquidity closely and possibly requiring personal guarantees or collateral for credit facilities.

2. Financial Strength:
   The balance sheet shows large fixed assets relative to the company size, suggesting investment in property assets that may support loan security. However, the current liabilities (£518,446) greatly exceed current assets (£11,214), resulting in a net current liability position of approximately £506,551. This working capital deficit indicates potential liquidity strain. Net assets have improved from a negative £5,133 in 2020 to a positive £7,840 in 2023, showing some recovery, but the overall equity base remains thin. Share capital is minimal at £100, reflecting a small equity cushion.

3. Cash Flow Assessment:
   The large working capital shortfall highlights a risk that the company may struggle to cover immediate cash outflows from operating activities. Current assets are low, with limited cash or receivables to offset creditors due within one year. There is no detailed profit and loss data here, but the static fixed asset value and minimal current asset growth suggest limited cash generation. Without additional capital injections or asset disposals, liquidity management remains a key concern.

4. Monitoring Points:

• Watch for improvements in net current assets and cash balances in future filings.
• Monitor any large changes in creditors or prepayments that might affect liquidity.
• Track any additional capital infusion or shareholder loans that strengthen the balance sheet.
• Assess payment patterns and any overdue accounts payable to suppliers.
• Review directors’ statements or management commentary for strategic plans addressing liquidity.