AJS MIDLANDS (PROPERTIES) LIMITED

Executive Summary

AJS Midlands (Properties) Limited exhibits a strong asset base with healthy shareholder equity, typical of a property holding company. However, negative working capital highlights a liquidity constraint that requires proactive cash flow management. With prudent financial oversight and strategic liquidity improvements, the company’s outlook remains stable and sustainable.

AJS MIDLANDS (PROPERTIES) LIMITED - Analysis Report

Company Number: 13056173

Analysis Date: 2025-07-20 11:56 UTC

Financial Health Assessment: AJS MIDLANDS (PROPERTIES) LIMITED

---

1. Financial Health Score: B

Explanation:
AJS Midlands (Properties) Limited demonstrates a solid financial foundation with strong net assets primarily driven by fixed assets (property holdings). However, the presence of net current liabilities and long-term creditors indicates some liquidity strain. The company’s financial "vital signs" suggest a stable but cautious outlook, warranting monitoring and strategic cash flow management. The absence of operating employees and reliance on property assets classify this as a holding or property investment entity with limited trading activity.

---

2. Key Vital Signs

Metric	Value (FY 2024)	Interpretation
Fixed Assets	£1,560,856	Very healthy; substantial long-term asset base typical for property holding companies.
Current Assets	£36,306	Low relative to liabilities; indicates limited liquid resources for short-term obligations.
Current Liabilities	£97,482	Significant short-term obligations; potential liquidity pressure.
Net Current Assets	-£61,176	Negative working capital ("symptom of distress" in liquidity) signaling current liabilities exceed current assets.
Long-term Liabilities	£263,113	Moderate long-term debt, manageable given asset base but must be serviced.
Net Assets / Equity	£1,236,567	Strong shareholder equity, indicating a healthy "balance sheet backbone."
Share Capital	£4.00	Nominal share capital, typical for micro-entities.
Average Employees	NIL	No staff employed; consistent with holding company status.

---

3. Diagnosis

The company's financial health resembles a patient with a strong skeletal frame (fixed assets) but some mild circulatory issues (negative net current assets). The fixed assets—likely property investments—provide a robust foundation and security for creditors and owners. However, the negative working capital reveals a liquidity tightness that could impair the company’s ability to meet short-term obligations without refinancing or asset liquidation.

The long-term liabilities are moderate and appear sustainable given the asset base, but the company should be wary of the cash flow needed to service these debts. The absence of employees and minimal current assets reinforce that this is not an operational trading business but a holding/property company. This model is typical, but the liquidity 'symptoms' mean the company should ensure ready access to funds or credit lines to avoid distress.

Overall, the company’s condition is stable but not without risk. The "heart" of the business—its property assets—is strong, but the "circulatory system" (cash and short-term liquidity) requires attention.

---

4. Recommendations

• Improve Liquidity Management:
  Explore ways to increase current assets or reduce current liabilities. This could include negotiating longer payment terms with creditors, accelerating receivables if any exist, or maintaining a cash reserve to cover short-term obligations.

• Debt Servicing Plan:
  Prepare and regularly update a cash flow forecast to ensure the long-term creditors can be serviced without stress. Consider refinancing options if interest costs are high or if debt maturity profiles concentrate in the near term.

• Asset Utilisation:
  Review property assets for opportunities to enhance income (e.g., leasing underutilised units) or consider selective disposals to boost liquidity if necessary.

• Maintain Compliance and Monitoring:
  Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain credibility with lenders and stakeholders.

• Strategic Planning:
  Given the company’s holding nature, monitor market conditions in the property sector closely to anticipate valuation changes or rental income fluctuations that could impact financial health.

---