J DAVIES PROPERTY SERVICES LIMITED

Executive Summary

J Davies Property Services Limited shows a high risk profile due to sustained negative net assets and severe liquidity deficits, raising doubts about its capacity to meet obligations. While compliance filings are current and management remains active, the business faces significant financial distress that warrants careful scrutiny of its operational viability and recovery plans before investment consideration.

J DAVIES PROPERTY SERVICES LIMITED - Analysis Report

Company Number: 13611965

Analysis Date: 2025-07-20 13:49 UTC

1. Risk Rating: HIGH
   This company exhibits significant solvency and liquidity concerns, with persistently large negative net assets and net current liabilities that have worsened over time. Such financial distress is a clear red flag for investors.

2. Key Concerns:

• Severe Negative Net Assets: Net liabilities increased from approximately £76k in 2023 to nearly £97k in 2024, indicating ongoing losses or erosion of equity.
• Substantial Working Capital Deficit: Current liabilities vastly exceed current assets by about £98k as of the latest accounts, implying the company may struggle to meet short-term obligations as they fall due.
• Limited Capital Base and Small Share Capital: The company has only £200 in share capital, which offers minimal financial buffer against operational or market risks.

3. Positive Indicators:

• Current Filing Compliance: Accounts and confirmation statements are up to date, suggesting no immediate regulatory compliance issues.
• Active Status with Recent Director Appointment: The company remains active and has appointed a new director recently, which might indicate ongoing management involvement and potential restructuring efforts.
• Micro Entity Filing: The company benefits from simplified reporting requirements, consistent with its size and scope.

4. Due Diligence Notes:

• Investigate the underlying reasons for the worsening net liabilities and working capital deficit. Look for details on profitability, cash flow, and any contingent liabilities not visible in the micro-entity filings.
• Review management plans or strategies to address the financial distress, including any capital injections or restructuring initiatives.
• Confirm the trading status and revenue generation capability, since absence of profit and persistent losses threaten operational sustainability.
• Assess relationships and transactions with related parties, especially given the presence of significant control by two individuals with equal voting rights.
• Verify absence of director disqualifications or regulatory sanctions beyond what is publicly filed.