TASHKEEL DEVELOPMENTS LTD

Executive Summary

Tashkeel Developments Ltd shows a concerning reduction in liquidity and net assets over the latest financial year, raising solvency and cash flow risks. While compliance with statutory filings is maintained, the sharp decline in working capital and equity warrants further scrutiny of operational performance and financial management. An investor should conduct detailed due diligence on the company’s financial health and business prospects before engagement.

TASHKEEL DEVELOPMENTS LTD - Analysis Report

Company Number: 13748886

Analysis Date: 2025-07-29 12:58 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial deterioration within one year, with current assets and cash decreasing drastically and current liabilities remaining high, indicating a strong liquidity strain and potential solvency risk.

2. Key Concerns:

• Sharp decline in cash and current assets from £107k to £15.9k within one year, suggesting liquidity issues.
• Current liabilities remain substantial (£14.8k) relative to current assets (£15.9k), resulting in a very slim net current asset position (£1.1k).
• Marked reduction in net assets from £27.4k to £3.1k, signaling erosion of equity and possibly ongoing losses impacting financial stability.

3. Positive Indicators:

• The company remains compliant with filing deadlines; no overdue accounts or confirmation statements are noted.
• Ownership and control are concentrated with a single director who appears actively involved and engaged with the company’s affairs.
• The company has tangible fixed assets, albeit modest, which provide some asset backing.

4. Due Diligence Notes:

• Investigate the causes of the steep decline in cash and current assets during the year ended 30 November 2023.
• Review the company’s profit and loss statements (not included) to understand operational performance and whether losses are driving equity erosion.
• Assess the sustainability of the company’s working capital given the current creditor exposure and cash flow trends.
• Confirm the director’s related party transactions and the status of the director’s loan balance to ensure no undue financial strain or misstatements.
• Examine the company’s order book, contracts, and future revenue streams given the industry context (construction of domestic buildings) to appraise operational viability.