DS & SS PROPERTY SERVICES LIMITED

Executive Summary

DS & SS Property Services Limited demonstrates significant financial stress characterized by negative net assets and a pronounced liquidity gap, largely due to high current and long-term liabilities outweighing minimal current assets. Although its investment property remains stable in value and regulatory filings are current, the company’s ability to service debt and generate sufficient operational cash flow is unclear and requires further detailed financial investigation. Investors should approach with caution, focusing on loan terms and the company’s income generation prospects.

DS & SS PROPERTY SERVICES LIMITED - Analysis Report

Company Number: 13140167

Analysis Date: 2025-07-20 17:57 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with consistent net liabilities, negative shareholders' funds, and large current and long-term liabilities relative to minimal current assets and cash.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company has reported negative net assets for four consecutive years, with shareholders’ funds declining from -£7,198 in 2021 to -£2,289 in 2024, indicating persistent accumulated losses or deficits.
• Severe Liquidity Shortfall: Current liabilities (_{£198,750) vastly exceed current assets (£1-£319), resulting in large negative net current assets (}-£72,728 to -£74,670), suggesting difficulty meeting short-term obligations.
• High Long-Term Debt Burden: The company holds £198,750 in bank loans due after one year with no corresponding increase in asset value or cash reserves, raising concerns about debt servicing capacity and refinancing risk.

3. Positive Indicators:

• Stable Investment Property Asset: The fixed assets, entirely investment properties, have remained valued at £269,189 over four years, indicating no impairment and a tangible asset base.
• Timely Filing and Compliance: The company is up to date with both accounts and confirmation statement filings, with no overdue returns or accounts, suggesting compliance with regulatory requirements.
• Clear Ownership and Governance: Ownership and control are concentrated with Mr. David Shaw, who is also a director, providing centralized decision-making.

4. Due Diligence Notes:

• Examine Loan Terms and Covenants: Investigate the nature, interest rates, repayment schedule, and security arrangements of the £198,750 bank loans to assess refinancing risk and potential impact on solvency.
• Review Revenue Generation and Cash Flow: The accounts do not disclose turnover or profit and loss details fully; clarifying the income statement and cash flow position is essential to evaluate operational viability.
• Assess Valuation and Marketability of Investment Property: Confirm the fair value methodology and market conditions underpinning the £269,189 valuation to determine realistic asset liquidity.
• Understand Negative Equity Origins: Analyze the cause of persistent negative equity, including historical losses, dividends, or write-downs, to ascertain sustainability.
• Evaluate Directors' and Management Backgrounds: Given the occupations and roles of the directors, assess their experience relevant to property investment and financial management.