AJ&B PROPERTY LIMITED

Executive Summary

AJ&B Property Limited exhibits high financial risk due to persistent net liabilities, substantial long-term debt, and working capital deficits. While regulatory compliance and asset stability are positive factors, significant concerns remain regarding solvency and liquidity. Further analysis of debt arrangements and cash flows is essential to fully assess operational viability.

AJ&B PROPERTY LIMITED - Analysis Report

Company Number: 13034930

Analysis Date: 2025-07-29 20:53 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities and negative shareholders' funds across four years, indicating solvency concerns. The large level of long-term liabilities relative to fixed assets and ongoing net current liabilities exacerbate the risk profile.

2. Key Concerns:

• Negative Net Assets: The company has consistently reported net liabilities (e.g., -£5,109 as of 2023), suggesting shareholders’ funds are eroded.
• High Long-Term Creditors: Creditors due after more than one year stand at £207,400, exceeding fixed assets and indicating possible over-leverage or reliance on debt financing.
• Working Capital Deficiency: Current liabilities exceed current assets by approximately £84,836 (2023), indicating liquidity stress and potential difficulty meeting short-term obligations.

3. Positive Indicators:

• Filing Compliance: The company is up to date with accounts and confirmation statement filings, demonstrating governance and regulatory compliance.
• Stable Fixed Assets: Fixed assets remain stable around £287k, suggesting maintained investment in tangible assets.
• Low Headcount: With only two employees (directors), operating costs may be low, potentially limiting cash burn.

4. Due Diligence Notes:

• Investigate Debt Terms: Clarify the nature, maturity, and covenants associated with the £207,400 long-term creditors to assess refinancing or repayment risks.
• Cash Flow Analysis: Obtain cash flow statements and management accounts to evaluate operational liquidity and real-time cash position.
• Directors’ Strategy: Understand management’s plan to address negative net assets and working capital deficits, including any capital injections or asset sales.
• Related Party Transactions: Verify if the indebtedness includes loans from directors or related parties, which could affect risk assessment.
• Profitability and Revenue: Review profit and loss details (not provided) to assess operational sustainability and revenue trends.

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