H & D D PROPERTIES LTD

Executive Summary

H & D D PROPERTIES LTD has a stable fixed asset base but is suffering from severe liquidity problems and negative equity, signaling financial distress. Immediate actions to improve cash flow, restructure liabilities, and inject capital are crucial to avoid insolvency. Without intervention, the company’s financial health will likely worsen despite its property holdings.

H & D D PROPERTIES LTD - Analysis Report

Company Number: 14151780

Analysis Date: 2025-07-29 14:54 UTC

Financial Health Assessment of H & D D PROPERTIES LTD (as of 30 June 2024)

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1. Financial Health Score: D

Explanation:
The company is showing clear symptoms of financial distress, primarily due to a negative net asset position and significant working capital deficits. While fixed assets provide a foundation, the imbalance between current liabilities and current assets indicates liquidity challenges. The ongoing negative equity suggests the company is technically insolvent on a balance sheet basis, meriting a low grade.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation
Fixed Assets	245,580	Relatively stable long-term asset base, likely property-related given industry
Current Assets	4,950	Very low liquid assets to cover short-term obligations
Current Liabilities	171,500	High short-term debts creating liquidity strain
Net Current Assets (Working Capital)	(84,449)	Significant negative working capital—a critical symptom of cash flow problems
Total Assets Less Current Liabilities	161,131	Positive, indicating fixed assets mostly cover short-term debts
Creditors Due After One Year	171,500	Large long-term liabilities—potentially loans secured against assets
Net Assets (Equity)	(10,369)	Negative equity indicates liabilities exceed assets—sign of financial distress
Shareholders Funds	(10,369)	Mirrors net assets, confirming shareholder value erosion

Interpretation:

• The company owns substantial fixed assets (likely property), anchoring its value.
• However, current liabilities far exceed current assets, causing a severe liquidity crunch—akin to a patient with adequate body mass but poor circulation.
• The negative net assets indicate the company owes more than it owns, a critical symptom of financial stress.
• No employees reported, implying minimal operational overhead but also no active income generation from personnel.

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3. Diagnosis:

Underlying Business Health:
H & D D PROPERTIES LTD appears to be a property investment or management company with considerable fixed assets but facing significant short-term financial strain. The persistent negative working capital means the company may struggle to meet immediate obligations without refinancing or asset liquidation.

The negative shareholder funds (equity) suggest the company is technically insolvent on a balance sheet basis, which is an alarming symptom. This could be due to accumulated losses or borrowing exceeding asset revaluation. The company's micro-entity status and lack of audit means detailed profit and loss data are not available, but the balance sheet signals caution.

No changes in asset or liability levels over recent years indicate stagnation, with no improvement in liquidity or equity position. This chronic condition suggests structural financial issues rather than a one-off event.

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4. Recommendations:

• Improve Liquidity: Explore refinancing or restructuring current liabilities, particularly short-term creditors. Negotiating longer repayment terms or converting some liabilities into equity could alleviate working capital strain.

• Asset Review: Conduct a valuation review of fixed assets to confirm their current market value. If overvalued, impairments may need recognition, worsening equity but providing realistic financial positioning.

• Cash Flow Management: Establish stronger cash flow controls to manage timing of payables and receivables. If possible, increase current assets through rental income, sales, or other revenue generation.

• Equity Injection: Consider capital injection from shareholders or new investors to restore positive equity and strengthen the balance sheet.

• Cost Control: Maintain minimal overheads given the absence of employees, but monitor any additional costs closely.

• Professional Advice: Given the financial symptoms, the company should engage with insolvency practitioners or financial advisors to explore rescue options and avoid formal insolvency proceedings.

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Medical Analogy Summary:
H & D D Properties Ltd shows a "weak pulse" in liquidity and a "negative blood pressure" in net assets, indicating the company is under financial stress and at risk of further deterioration unless intervention occurs. Its fixed asset "heart" is strong but not currently pumping enough "cash flow blood" to sustain operations smoothly.

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