NDP PROPERTY DEVELOPMENT LTD

Executive Summary

NDP Property Development Ltd is currently in a financially distressed position characterized by sustained negative equity and critical liquidity shortfalls, raising substantial solvency concerns. While the company remains compliant with filing requirements and holds a significant fixed asset base, the absence of operational scale and persistent working capital deficits present high risk to investors. Further detailed due diligence on asset quality and creditor exposure is essential to clarify the company’s recovery potential and operational sustainability.

NDP PROPERTY DEVELOPMENT LTD - Analysis Report

Company Number: 12905102

Analysis Date: 2025-07-29 19:37 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to persistent net liabilities, significant negative working capital, and negative shareholders' funds over multiple years, indicating ongoing solvency challenges.

2. Key Concerns:

• Solvency Risk: The company has net liabilities of £8,257 as of 30 September 2024, with shareholders' funds negative for consecutive years, suggesting insufficient equity to cover liabilities.
• Liquidity Concerns: Current liabilities (£303,117) far exceed current assets (£1,720), resulting in a negative net current asset position of £301,397. This indicates acute short-term liquidity stress and potential difficulties meeting immediate obligations.
• Operational Stability: The company reports no employees and minimal current assets, implying limited operational activity or scale. The business model relies heavily on fixed assets (£540,692) but has not translated this into improved liquidity or equity, which raises concerns about sustainability.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, showing adherence to statutory deadlines and regulatory compliance to date.
• Ownership Structure: Clear and stable control structure with a dominant PSC owning 75-100% of shares and voting rights, potentially facilitating decisive governance and recapitalization if needed.
• Asset Base: Fixed assets have increased modestly over the years, indicating some investment or asset accumulation, which could provide collateral or value recovery in distress scenarios.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to assess their liquidity and potential to generate cash or be monetized.
• Review creditor composition and terms, particularly the large current liabilities, to understand payment obligations and risks of default or enforcement actions.
• Examine cash flow statements or bank records (not provided) to evaluate actual liquidity management and operational cash generation or burn.
• Understand the business model and revenue streams, given zero employees and minimal current assets, to assess future viability and growth prospects.
• Review director changes and the impact of the recent resignation of Alexander James Blackburn in April 2025 on company governance and operations.