Company Number: 15252689

Analysis Date: 2025-07-29 15:34 UTC

Financial Health Assessment of CJSS PROPERTY LTD

---

1. Financial Health Score: D

Explanation:
CJSS PROPERTY LTD shows early signs of financial distress, primarily due to negative net assets and current liabilities exceeding current assets. As a newly incorporated micro-entity in the real estate sector, the company is in a fragile state with a "symptom" of working capital deficiency. While this is not unusual for a startup phase, the financial position requires careful monitoring and proactive management to avoid worsening liquidity issues.

---

2. Key Vital Signs:

Metric	Value (£)	Interpretation
Current Assets	6,723	Limited cash or near-cash assets to cover short-term obligations.
Current Liabilities	15,800	Short-term debts primarily owed to directors (advances/credits).
Net Current Assets (Working Capital)	-67	Slightly negative, indicating a shortfall in liquid resources to meet immediate debts.
Net Assets (Shareholders’ Funds)	-267	Negative equity suggests liabilities exceed assets, a "critical symptom" of financial strain.
Prepayments and Accrued Income	9,010	Indicates payments made in advance or income earned but not yet received; somewhat supportive.
Accruals and Deferred Income	-200	Small deferred expenses or income recognition timing differences.
Directors’ Loans (Advances)	15,800	Significant reliance on director funding to support operations, a "lifeline" but also a risk factor.

---

3. Diagnosis:

CJSS PROPERTY LTD is in its infancy, incorporated only in November 2023, and has reported its first set of accounts ending November 2024. The financial "vitals" reveal a company operating with minimal assets and a slight negative working capital position. This indicates the company currently lacks a "healthy cash flow" to cover its short-term debts without relying on director loans.

The negative net assets (shareholders' funds) reflect accumulated losses or initial funding shortfall, common in startups but a potential red flag if it persists. The advances from directors totaling £15,800 act as a critical financial "support system" keeping the company afloat, but this exposes the business to risks if the directors are unable to continue this support.

No audit was required or performed, which is typical for a micro-entity, but it means financial controls and data accuracy depend heavily on internal management.

The company operates in the real estate letting sector (SIC 68209), which can require substantial upfront capital and working capital management. At this stage, the financial "symptoms" suggest the company is in a vulnerable state but not yet in immediate danger of insolvency. The directors' dual role as major shareholders and creditors indicates strong personal commitment but also concentration risk.

---

4. Recommendations:

• Enhance Cash Flow Management:
  Implement strict cash flow forecasting and control to ensure that short-term liabilities can be met without increasing director loans. Seek to convert prepayments and accrued income into actual cash receipts promptly.

• Reduce Reliance on Director Loans:
  Explore alternative funding options such as small business loans, grants, or equity investment to reduce dependence on advances from directors, which are a financial risk if withdrawn suddenly.

• Increase Capital Base:
  Consider injecting additional equity capital to improve net assets and strengthen the balance sheet. This will provide a more stable financial foundation and support future growth.

• Monitor Working Capital Closely:
  Regularly review current assets and liabilities to avoid deteriorating liquidity. Negative net current assets, even if slight, can escalate quickly and impair operations.

• Prepare for Growth and Scaling:
  Develop a detailed business plan focusing on revenue generation and cost management to transition from startup losses to profitability, ensuring the company achieves "healthy financial health."

• Professional Financial Advice:
  Engage with a qualified accountant or financial advisor to establish robust accounting practices, financial controls, and compliance with Companies House filing requirements.

---