DE JAGER INNS LTD

Executive Summary

De Jager Inns Ltd exhibits significant solvency and liquidity risks, with current liabilities far exceeding current assets and a large negative equity position. The overdue accounts filing and worsening financial metrics raise concerns about governance and operational sustainability. Further investigation into the company’s liabilities, cash flow, and compliance status is recommended before considering any investment.

DE JAGER INNS LTD - Analysis Report

Company Number: 13392890

Analysis Date: 2025-07-29 20:54 UTC

1. Risk Rating: HIGH
   Justification: The company shows severe negative net current assets and shareholders' funds, indicating an insolvency risk. Current liabilities vastly exceed current assets, and overdue filings exacerbate concerns about financial health and governance.

2. Key Concerns:

• Solvency and Liquidity Deficits: Current liabilities (£177,460) exceed current assets (£5,435) by a wide margin, resulting in net current liabilities of £172,025 as of May 2023. Shareholders’ funds are deeply negative (£141,565), signaling potential inability to meet obligations.
• Overdue Accounts Filing: The company’s latest accounts were due by February 2025 but remain overdue, which may reflect operational or compliance issues.
• Declining Financial Position: Between 2022 and 2023, net current liabilities worsened by over £63,000, and shareholders’ deficit nearly doubled, suggesting deteriorating financial stability.

3. Positive Indicators:

• Active Status with a Single Director/PSC: The company is active and controlled by a single director and majority shareholder, which can enable swift decision-making.
• Tangible Fixed Assets: The company holds tangible assets valued at £30,461, which could be leveraged or sold to mitigate liabilities.
• No Insolvency Proceedings: The company is not currently in liquidation, administration, or receivership.

4. Due Diligence Notes:

• Investigate the nature and terms of the £177,460 current liabilities, including any overdue tax or trade debts.
• Clarify reasons for overdue accounts filing and assess management’s plans to address compliance and financial challenges.
• Review cash flow statements and bank facilities to understand liquidity management and ability to cover short-term obligations.
• Assess operational performance and revenue trends to determine sustainability of business model in the public houses and bars sector.
• Confirm whether any contingent liabilities or legal challenges exist that could impact financial health.