KDP PROPERTY DEVELOPMENTS LTD

Executive Summary

KDP Property Developments Ltd exhibits a high solvency and liquidity risk profile driven by negative net assets and significant working capital deficit in its first financial period. While regulatory compliance to date is maintained, operational and governance concerns arise from director turnover and lack of employees. Further inquiry into liabilities and management plans is essential to assess sustainability.

KDP PROPERTY DEVELOPMENTS LTD - Analysis Report

Company Number: 15432843

Analysis Date: 2025-07-20 16:17 UTC

1. Risk Rating: HIGH

This company demonstrates significant financial distress as evidenced by negative net assets and substantial current liabilities exceeding current assets by a wide margin. The micro-entity classification and short trading history add to uncertainty regarding operational stability.

2. Key Concerns:

• Negative Net Assets (£-37,478): Indicates insolvency on a balance sheet basis, raising serious concerns about the company’s ability to meet its obligations.
• Severe Working Capital Deficit (Net Current Assets £-128,975): Current liabilities far exceed current assets, suggesting liquidity problems and potential cash flow constraints.
• Director Turnover and Governance: Two directors resigned within the first year, leaving a single director in charge. This may indicate internal governance issues or instability at the leadership level.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue filings for accounts or confirmation statements, indicating regulatory compliance thus far.
• Established Incorporation and Clear Ownership: The company is active, with three identified persons with significant control holding balanced ownership and voting rights.
• Micro-entity Status: Reduced filing requirements and smaller operational scale may reduce complexity and reporting burdens at this stage.

4. Due Diligence Notes:

• Investigate the nature and composition of the £129,095 current liabilities to determine if these are short-term debts, loans from related parties, or trade payables.
• Clarify the company’s business model and projected cash flows to assess how it intends to resolve its negative net asset position.
• Explore reasons behind director resignations and assess governance controls under the sole remaining director.
• Confirm if there is any related party financing or contingent liabilities not disclosed in the micro-entity accounts.
• Review any subsequent events post 31 January 2025 that might affect financial position or operational viability.