DRONFIELD DEVELOPMENTS LTD

Executive Summary

Dronfield Developments Ltd is an early-stage micro-entity operating in real estate trading with currently negative net assets and working capital deficits, reflecting initial start-up financial stress. The company is compliant with filing requirements and owned by a single holding company, which may provide support. Close monitoring of financial development and operational progress is advised to evaluate future risk properly.

DRONFIELD DEVELOPMENTS LTD - Analysis Report

Company Number: 14785282

Analysis Date: 2025-07-20 12:49 UTC

1. Risk Rating: HIGH

Justification: Dronfield Developments Ltd is a newly incorporated micro-entity with very limited financial data showing negative net assets and working capital, indicating solvency and liquidity concerns at this early stage.

2. Key Concerns:

• Negative Net Assets: The company reports net assets of -£492 and negative net current assets of -£252, implying liabilities exceed assets.
• Minimal Operating History: Incorporated less than one year ago with only one employee (the director) and negligible fixed assets (£1), limiting evidence of operational stability.
• Related Party Transactions: Director’s loan account shows a small liability (£1), suggesting reliance on director funding with no external financing disclosed.

3. Positive Indicators:

• Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance to date.
• Clear Ownership: 75-100% ownership by Dronfield Holdings Ltd, a presumably related entity, which could provide financial or strategic support.
• Accounting Prepared Under Micro-Entity Regime: The company benefits from simplified reporting requirements, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature and extent of financial support from Dronfield Holdings Ltd and any other related parties.
• Review business plan or strategy to assess prospects for revenue generation and asset growth.
• Monitor upcoming financial periods for improvement in net assets and liquidity position.
• Confirm no undisclosed liabilities or contingent risks exist.
• Assess director’s background and ability to manage and grow the business sustainably.