GRANVILLE STREET (DOVER) DEVELOPMENT LIMITED

Executive Summary

Granville Street (Dover) Development Limited shows a persistently weak financial position characterized by large negative working capital and shareholders' funds deficits, signaling significant solvency and liquidity risks. The company benefits from a tangible fixed asset base and good compliance with filings but requires closer scrutiny of its liabilities and operational viability to assess investment suitability.

GRANVILLE STREET (DOVER) DEVELOPMENT LIMITED - Analysis Report

Company Number: 13529522

Analysis Date: 2025-07-29 20:43 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with negative net current assets and persistently negative shareholders' funds over multiple years. The scale of current liabilities far exceeds current assets, indicating a high risk of inability to meet short-term obligations.

2. Key Concerns:

• Severe Negative Working Capital: Current liabilities (£566,147) greatly exceed current assets (£3,223) as of July 2024, producing a large negative net current asset position (-£562,924). This suggests potential cash flow difficulties.
• Consistent Shareholders' Funds Deficit: Shareholders' funds are deeply negative (-£184,992 in 2024), worsening year-on-year, highlighting accumulated losses or debt funding beyond asset base.
• Dependence on a Single Director and PSC Entity: The company has only one director and one person with significant control (Cayan Brothers Properties Limited), potentially increasing governance and operational risk without broader oversight or management depth.

3. Positive Indicators:

• Established Fixed Asset Base: Fixed assets remain stable at £377,932 over the years, indicating some tangible asset backing which may support borrowing or restructuring.
• Timely Filing Compliance: All statutory filings (accounts and confirmation statements) are up to date and not overdue, reflecting compliance with regulatory requirements.
• Micro Entity Reporting: The company is classified as a micro-entity, which may limit complexity and overhead in operations.

4. Due Diligence Notes:

• Investigate the nature and liquidity of fixed assets to understand if they can be leveraged or sold to improve solvency.
• Review the company's cash flow statements and creditor payment terms to assess short-term liquidity management.
• Clarify the source and terms of current liabilities to identify whether they are bank borrowings, director loans, or trade payables.
• Assess the company's business model viability given ongoing losses and negative equity position.
• Confirm there are no director disqualifications or regulatory compliance issues beyond what is publicly filed.