PDH PROPERTIES LIMITED

1. Risk Rating: LOW

The risk rating for PDH Properties Limited is assessed as LOW. The company demonstrates a robust balance sheet with substantial net assets, positive working capital, and a long, stable operating history of over 25 years. Furthermore, the company is fully compliant with statutory filing requirements at Companies House. The primary limitation in this assessment is the company's micro-entity status, which restricts the availability of detailed profit and loss or cash flow data.

2. Key Concerns

1. Erosion of Net Assets: While still substantial, net assets have declined from £901,127 in March 2023 to £838,219 in March 2025. Additionally, total assets have trended downward from £1.76 million in 2018 to £1.04 million in 2025. Without a profit and loss statement, it is unclear if this is due to operational losses, asset disposals, or director withdrawals/dividends.
2. Limited Financial Transparency: As a micro-entity, the company files abbreviated accounts. The absence of a detailed income statement, cash flow statement, and comprehensive notes limits the ability to assess operational profitability, rental yield, and cash generation efficiency.
3. Rising Short-term Liabilities: Creditors falling due within one year increased by approximately 32% year-over-year, from £126,817 in 2024 to £167,891 in 2025. While comfortably covered by current assets, this upward movement warrants monitoring to ensure short-term obligations do not escalate further.

3. Positive Indicators

1. Strong Solvency and Liquidity: The company holds net assets of £838,219 and positive working capital (net current assets) of £100,162. The current ratio is approximately 1.6, indicating a healthy buffer to meet short-term obligations.
2. Operational Longevity and Stability: Incorporated in 1999, the company has a 25-year track record in the real estate sector (SIC 68209). The balance sheet indicates ownership of fixed assets valued at £781,267, providing a stable base for letting operations.
3. Regulatory Compliance: The company is up to date with all statutory filings. Accounts for the period ending 31 March 2025 were filed on 18 September 2025, well ahead of the deadline, with no overdue confirmation statements.

4. Due Diligence Notes

1. Asset Movements: Investigate the historical decline in total assets from £1.76 million (2018) to £1.04 million (2025). Determine whether this reflects the strategic disposal of property, impairment/revaluation of assets, or transfers to related entities.
2. Accruals and Deferred Income: The 2025 accounts newly show £43,210 in accruals and deferred income, compared to nil in 2024. Further investigation is needed to understand the nature of this liability and its impact on future cash flows.
3. Related Party Transactions: The company is closely held by the Xxxxxxxname shown to subscribers family (PSCs and directors). Given the family-owned nature of the business and the micro-entity filing exemptions, it is important to review any related-party loans, director remuneration, or intercompany balances that may not be fully detailed in the public filings.

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