SAND DUNE PROPERTIES LTD

Executive Summary

Sand Dune Properties Ltd is a recently formed micro-entity with a negative net asset position and significant working capital deficiency. The company currently lacks the financial strength and cash flow to meet short-term liabilities, resulting in a credit decline. Monitoring should focus on capital improvements and operational progress before reconsidering credit facilities.

SAND DUNE PROPERTIES LTD - Analysis Report

Company Number: 15126340

Analysis Date: 2025-07-20 11:46 UTC

1. Credit Opinion: DECLINE
   Sand Dune Properties Ltd is a newly incorporated micro-entity with a negative net asset position of £6,458 and net current liabilities of £5,648 as of its first financial year ending September 2024. The company’s balance sheet shows a weak financial base with liabilities exceeding assets, indicating an inability to cover short-term obligations. Given the negative equity and absence of any trading history or profitability, the company currently lacks the financial strength and track record to support credit facilities. Approval for credit would be premature without significant capital injection or operational improvement.

2. Financial Strength:
   The company’s balance sheet reveals total current assets of only £948 against current liabilities of £6,596, resulting in a working capital deficit. The overall net liabilities of £6,458 reflect that the company has not yet generated retained earnings or built equity. As a micro-entity with a sole director/shareholder controlling 75-100% ownership, the financial position is highly reliant on owner funding. The absence of fixed assets or other tangible resources further weakens the financial footing.

3. Cash Flow Assessment:
   With current liabilities substantially exceeding current assets, the company faces liquidity challenges. The small cash or equivalent balance (£948) is unlikely to cover immediate obligations of £6,596. There is no evidence of operating cash flow or revenue generation to support ongoing working capital needs. The negative net current assets highlight a potential risk of default on short-term payables unless additional funding is provided.

4. Monitoring Points:

• Capital injection or equity increases to improve net asset position.
• Development of revenue streams and profitability to support cash flow.
• Timely payment of creditors and management of working capital to avoid liquidity crises.
• Regular filing compliance and financial reporting to track financial health.
• Director’s commitment to capitalization and operational progress.