IJM DEVELOPMENTS LTD

Executive Summary

IJM DEVELOPMENTS LTD is a start-up micro-entity in building project development showing a leveraged balance sheet with negative net assets due to long-term creditors. Positive net current assets indicate short-term liquidity, but credit exposure is linked to reliance on external funding rather than trading performance. Conditional credit approval is recommended with close monitoring of cash flow, creditor reduction, and operational progress.

IJM DEVELOPMENTS LTD - Analysis Report

Company Number: 14760276

Analysis Date: 2025-07-19 12:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL IJM DEVELOPMENTS LTD is a newly incorporated micro entity engaged in building project development. The company shows a negative net asset position (£-1,186) due primarily to a creditor balance classified as long-term liabilities (£206,295) exceeding its current assets and overall equity. This indicates initial reliance on external funding, possibly shareholder loans or related party balances. While the company is in an early stage with no trading history or employees reported, the absence of overdue filings and presence of experienced directors suggest competent governance. Credit approval should be conditional on ongoing monitoring of the company’s trading performance, cash flow, and reduction of long-term creditor balances as it matures.

2. Financial Strength:

• Current assets stand at £206,170, mainly comprising cash or receivables, with minimal current liabilities (£106), resulting in positive net current assets (£206,064), indicating adequate short-term liquidity.
• However, creditors due after one year total £206,295, pushing net assets into a deficit of £1,186 and negative shareholders’ funds, reflecting initial funding structure rather than operational losses.
• The micro-entity has no fixed assets or employees at this stage, limiting collateral availability and operational scale.
• The balance sheet reflects a start-up entity with a leveraged position that needs to develop revenue streams and reduce external liabilities.

3. Cash Flow Assessment:

• The reported current assets relative to minimal current liabilities suggest reasonable short-term liquidity.
• No detailed cash flow statement is available, but working capital is positive.
• The long-term creditor balance signals reliance on external funding; the company must generate operational cash flows to service and reduce this liability.
• No employee costs currently imply low operating outflows.
• As a new company, cash flow volatility risk is elevated until stable contracts or projects materialize.

4. Monitoring Points:

• Reduction in long-term creditors and movement towards positive net assets and equity.
• Revenue generation and profitability trends in subsequent financial periods.
• Cash flow from operations, especially timing of cash inflows from project development activities.
• Changes in working capital components and any new borrowing or capital injections.
• Director and shareholder actions, including any related party transactions impacting liquidity or solvency.
• Timely filing of annual accounts and confirmation statements to ensure compliance.