PDN PROPERTY DEVELOPMENTS LIMITED

Executive Summary

PDN Property Developments Limited, incorporated in 2023, exhibits significant solvency and liquidity risks with negative net assets and a large working capital deficit as of May 2024. While its fixed assets may hold value aligned with its real estate business, immediate financial stability concerns warrant careful scrutiny. The company’s compliance with filing requirements and experienced management are positive factors, but further detailed investigation into asset quality and cash flow is essential before any investment decision.

PDN PROPERTY DEVELOPMENTS LIMITED - Analysis Report

Company Number: 14836167

Analysis Date: 2025-07-29 15:30 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets and net current liabilities shortly after incorporation, indicating an immediate solvency risk. The micro-entity classification and very recent incorporation limit financial history for a more balanced assessment, but current figures indicate financial distress.

2. Key Concerns:

• Negative Net Assets (£-59,596): The company’s liabilities exceed its assets, which suggests insolvency at the balance sheet date.
• Severe Working Capital Deficit (Net Current Assets £-490,330): Current liabilities vastly exceed current assets, indicating potential liquidity issues and difficulties meeting short-term obligations.
• Accruals and Deferred Income (£43,800): Represents liabilities not yet paid; combined with other short-term payables, this heightens risk of cash flow constraints.

3. Positive Indicators:

• Fixed Assets of £474,534: Substantial investment in long-term assets may represent valuable property holdings consistent with the business’s SIC classification (buying and selling own real estate).
• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, indicating good administrative governance.
• Experienced Directors and PSCs: The presence of multiple directors and persons with significant control may provide operational expertise and oversight.

4. Due Diligence Notes:

• Review the nature and valuation of fixed assets to verify if they are realizable at or near book value.
• Examine cash flow statements and any short-term financing facilities or shareholder loans supporting liquidity.
• Investigate reasons for large current liabilities and accruals, including any contingent liabilities or related party transactions.
• Assess business plan and capital structure to understand how the company intends to resolve its negative net asset position.
• Confirm if any director or shareholder loans exist, as these might underpin current financing and solvency.
• Consider the impact of the company’s recent incorporation on financial trends and operational viability.