DURIAN DEVELOPMENTS LTD

Executive Summary

DURIAN DEVELOPMENTS LTD is a newly incorporated private limited company currently dormant with minimal financial activity and a very small equity base of £100. While no financial distress is evident, the company has not yet commenced meaningful operations, typical of an early-stage entity. To improve its financial health, the company should focus on activating business operations, securing appropriate funding, and maintaining strong financial controls.

DURIAN DEVELOPMENTS LTD - Analysis Report

Company Number: 15054504

Analysis Date: 2025-07-20 15:28 UTC

Financial Health Assessment of DURIAN DEVELOPMENTS LTD

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1. Financial Health Score: D

Explanation:
The company is in its infancy, having been incorporated in August 2023, and is currently dormant with minimal financial activity reflected in its accounts. The balance sheet shows extremely low levels of cash and net assets (£100), indicating a very thin financial base or "fragile pulse." While this is not uncommon for a new startup or dormant company, it signals that the business has not yet established a stable financial footing or operational cash flow.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Age	~1 year	Newly formed; still in early development or pre-operational phase.
Cash at Bank	£100	Minimal liquidity; insufficient buffer for operational needs.
Net Current Assets	£100	Positive but negligible working capital; company can cover immediate current liabilities.
Net Assets (Shareholders’ Funds)	£100	Extremely low equity base; limited capital invested.
Employee Count	2 (average)	Small workforce consistent with micro or small enterprise profile.
Company Status	Active	The business is legally active but dormant financially.
Industry Sector (SIC Codes)	Real estate (letting and buying/selling)	Sector typically capital intensive; requires significant funding to operate effectively.
Filing Compliance	Up to date	No overdue filings; good governance indicator.

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3. Diagnosis

The company's financial "vital signs" reveal a dormant status with extremely limited financial activity. The balance sheet is almost bare-bones, showing only a nominal cash balance and equity of £100, which is simply the initial issued share capital. There are no revenues, profits, or meaningful assets reported yet. This is typical for a newly formed entity that has not yet commenced trading or asset acquisition.

Symptoms of Financial Inactivity:

• Minimal cash reserves and net assets indicate no operational cash flow or trading history.
• No reported liabilities, which is consistent with dormancy but also means no gearing or financing is currently in place.
• The sector (real estate) usually demands substantial capital investment, so the lack of assets or investments suggests the company is still in setup or pre-investment phase.
• The company has complied with reporting requirements, which is positive and shows responsible management even in early stages.

In medical analogy, the company’s financial health is like a patient in the incubation period—alive but not yet active or exhibiting the signs of growth or stress. No symptoms of distress are evident because the business is not yet operational, but it is too early to assess the robustness or sustainability of financial health.

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4. Recommendations

To move from dormancy toward a healthier financial state, the following steps are advisable:

• Activate Operational Activity: Begin trading or asset acquisition to generate revenues and build financial history. This will improve liquidity and working capital dynamics.
• Capital Injection: Consider additional equity or debt funding to build a stronger capital base consistent with the capital-intensive real estate sector.
• Financial Planning: Develop a detailed business plan with cash flow projections to avoid liquidity crunches once operations commence.
• Cost Control: Keep overheads low during startup phase to conserve cash.
• Regular Monitoring: Maintain timely filing and compliance to avoid penalties and maintain corporate reputation.
• Engage Advisors: Utilize accountants or financial consultants to help structure funding and tax planning efficiently as business scales.

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