GJB PROPERTY DEVELOPMENTS LTD

Executive Summary

GJB Property Developments Ltd is a micro-entity with significant fixed assets but high leverage and poor short-term liquidity. The company’s net assets are minimal, and current liabilities exceed current assets substantially, indicating working capital challenges. Credit approval should be conditional on conservative limits and close ongoing monitoring of liquidity and debt servicing capacity.

GJB PROPERTY DEVELOPMENTS LTD - Analysis Report

Company Number: 13012768

Analysis Date: 2025-07-20 12:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. GJB Property Developments Ltd is an active micro-entity engaged in property development and real estate activities with a sole director and shareholder. While the company holds significant fixed assets (£131,000), the high level of long-term creditors (£93,264) relative to net assets (£3,619) indicates a leveraged position. The company’s ability to meet short-term obligations is strained given the sharp decrease in current assets (from £6,734 in 2022 to £300 in 2023) and negative net current assets (-£34,117). The business appears operational but reliant on external financing or shareholder support. Approval is possible if credit limits are conservative and subject to regular financial monitoring.

2. Financial Strength: The balance sheet shows a stable fixed asset base consistent over three years, suggesting ownership of property or development assets. However, current assets have declined markedly, reducing liquidity. Current liabilities remain high and long-term creditors are substantial, pressuring the capital structure. Net assets have increased slightly (from £2,047 in 2022 to £3,619 in 2023) but remain low relative to liabilities. Shareholders’ funds are minimal (£3,619), indicating limited equity buffer. Overall, the company is thinly capitalized and highly leveraged, constraining financial flexibility.

3. Cash Flow Assessment: Reported cash on hand dropped significantly to negligible levels in the latest year, with current assets primarily depleted. Negative net current assets reflect a working capital deficit, implying potential difficulties in meeting immediate liabilities without refinancing or capital injections. The absence of employees suggests low operational expenses, but the liquidity position necessitates caution. Cash flow from operations or financing sources should be verified before extending credit, as the company’s short-term liquidity appears insufficient to cover current liabilities.

4. Monitoring Points:

• Liquidity ratios (current ratio and quick ratio) to detect improvements or further deterioration in working capital.
• Changes in creditors and debt repayment schedules, especially long-term borrowings.
• Timely filing of statutory accounts and confirmation statements to ensure compliance.
• Any significant transactions affecting fixed assets or capital structure.
• Director’s financial support or capital injections as a source of funding.
• Industry conditions affecting property valuations and rental income.