DRGR (PROPERTY) LIMITED

Executive Summary

DRGR (Property) Limited demonstrates high financial risk characterized by severe liquidity shortfalls and declining net asset levels despite holding significant fixed assets. While compliance with filing obligations is maintained and governance appears stable, the company’s heavy reliance on debt financing and negative working capital present material concerns for creditors and investors. Further due diligence on asset quality, debt terms, and cash flows is essential to assess the company’s viability.

DRGR (PROPERTY) LIMITED - Analysis Report

Company Number: 14402450

Analysis Date: 2025-07-29 19:59 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity concerns, with net current liabilities substantially exceeding current assets and a declining net asset position over the past two years. Although it holds considerable fixed assets, these are heavily leveraged by short- and long-term creditors, raising questions about the company’s ability to meet near-term obligations.

2. Key Concerns:

• Severe Negative Working Capital: Current liabilities (~£561,795) far exceed current assets (~£6,052), resulting in net current liabilities of approximately -£555,743, indicating acute liquidity risk.
• Declining Net Assets: Net assets have fallen from £31,867 in 2023 to £16,317 in 2024, suggesting erosion of shareholder equity and potential operational losses or asset impairments.
• High Long-Term Debt: Creditors due after more than one year stand at £429,965, representing a substantial financial obligation relative to the modest equity base.

3. Positive Indicators:

• Significant Fixed Assets: The company owns fixed assets valued over £1 million, which could provide collateral value or potential for refinancing.
• Compliance with Filings: No overdue filings or confirmation statements, indicating good regulatory compliance and governance.
• Stable Management: Directors have been in place since incorporation with no known disqualifications or governance issues.

4. Due Diligence Notes:

• Asset Valuation and Liquidity: Investigate the nature, marketability, and encumbrances on fixed assets to assess realizable value.
• Debt Terms and Covenants: Review creditor agreements, especially long-term debt maturity profiles, interest rates, and any financial covenants.
• Cash Flow and Profitability: Obtain detailed cash flow statements and profit and loss data (not filed due to micro-entity status) to evaluate operational sustainability.
• Related Party Transactions: Examine any transactions with controlling entity Drgr Ltd or directors for potential financial dependencies or conflicts.
• Future Business Plans: Understand management’s strategy to improve liquidity and solvency, including refinancing or asset sales.