J HUMPHRIES PROPERTY DEVELOPMENT LIMITED

Executive Summary

J Humphries Property Development Limited is currently facing financial strain characterized by negative net assets and a working capital deficit, despite substantial fixed asset holdings. The company is in a fragile financial position requiring immediate focus on liquidity improvement and cash flow management to stabilize operations. With targeted financial restructuring and operational improvements, the company can recover and strengthen its financial health.

J HUMPHRIES PROPERTY DEVELOPMENT LIMITED - Analysis Report

Company Number: 14375190

Analysis Date: 2025-07-29 15:16 UTC

Financial Health Assessment of J Humphries Property Development Limited

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress primarily due to negative net assets and a working capital deficit. While it is still active and has tangible fixed assets, the balance sheet reveals symptoms of financial strain, indicating that the company is currently in a fragile state.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Cash on Hand	£1,024	Very low liquidity — limited immediate cash reserves.
Current Liabilities	£112,850	High short-term obligations relative to cash/assets.
Net Current Assets (Working Capital)	-£44,766	Negative working capital: symptoms of liquidity issues.
Fixed (Tangible) Assets	£157,048	Significant investment in property/assets.
Net Assets (Shareholders' Funds)	-£568	Negative equity indicates liabilities exceed assets.
Share Capital	£1	Minimal share capital, typical for small private company.
Retained Earnings (P&L Reserve)	-£569	Accumulated losses or no retained profits.

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3. Diagnosis

Vital Signs Analysis:
The company has invested in tangible fixed assets worth £157,048, indicative of its core business in property development. However, the cash reserves are minimal (£1,024), and the company faces significant current liabilities (£112,850), leading to a negative working capital position of -£44,766. This is akin to a patient having a strong skeletal frame (fixed assets) but a weak circulatory system (cash flow and liquidity). The negative net assets (-£568) further indicate that total liabilities slightly exceed total assets, a symptom of financial imbalance.

Underlying Symptoms:

• The company is dormant in filing category but active operationally, which may indicate limited trading or early-stage development.
• The negative working capital and current liabilities suggest potential liquidity strain, meaning the company might struggle to meet short-term obligations without additional funding or asset liquidation.
• Minimal cash reserves exacerbate this risk, suggesting cash flow is tight or dependent on external injections.
• The negative shareholders' funds imply that accumulated losses have eroded initial equity.

Business Health Interpretation:
The company appears to be in an early growth or investment phase, having acquired significant fixed assets but not yet generating sufficient operating cash flow or profits to sustain its liabilities. This can be viewed as a patient who has undergone surgery (asset acquisition) but is not yet recovered, requiring careful monitoring and support.

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4. Recommendations

1. Improve Liquidity Position:

   • Seek short-term financing or restructure current liabilities to improve working capital.
   • Explore additional capital injection from existing shareholders or new investors to bolster cash reserves.

2. Cash Flow Management:

   • Develop a detailed cash flow forecast and monitor cash inflows/outflows rigorously.
   • Prioritize payments and negotiate extended terms with creditors where possible.

3. Asset Utilization:

   • Consider monetizing non-essential fixed assets or leasing out property to generate operating cash flow.

4. Profitability Focus:

   • Accelerate property development projects to generate revenue.
   • Control operating expenses to reduce losses and build retained earnings.

5. Financial Reporting and Governance:

   • Maintain timely filing of accounts and returns to avoid penalties and maintain business credibility.
   • Engage professional advice for financial restructuring if liquidity issues persist.

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