J M MIDLAND PROPERTIES LIMITED

Executive Summary

J M Midland Properties Limited is a recently incorporated micro-entity with a highly leveraged balance sheet characterized by very low equity and significant long-term liabilities. While current assets cover short-term debts and regulatory filings are up to date, the company’s financial structure signals moderate solvency and liquidity risks typical of small property businesses reliant on external financing. Further examination of creditor terms, cash flows, and asset valuations is recommended to fully appraise operational sustainability and financial resilience.

J M MIDLAND PROPERTIES LIMITED - Analysis Report

Company Number: 13191867

Analysis Date: 2025-07-19 12:53 UTC

1. Risk Rating: MEDIUM
   The company shows a very minimal equity base (£100 share capital and shareholders’ funds) with significant liabilities (£236,250) that offset its current assets. While it is not in overdraft or insolvent, the balance sheet structure suggests financial leverage and tight net asset positioning, which poses a moderate solvency and liquidity risk typical for an early-stage property-related entity.

2. Key Concerns:

• Minimal Equity Base: Shareholders’ funds are only £100 despite asset values and liabilities exceeding £236k, indicating potential undercapitalization or reliance on debt-like financing.
• Substantial Long-Term Creditors: The presence of creditors falling due after more than one year for £236,250 exactly matches the difference between current assets and liabilities, suggesting the company is highly leveraged or dependent on external financing to fund its asset base.
• Lack of Profit and Reserve Accumulation: No indication of retained earnings or P&L reserves, which may highlight limited profitability or reinvestment capacity to strengthen financial stability.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: Net current assets of £236,250 indicate the company can cover its short-term obligations without distress at the balance sheet date.
• Timely Filing and Compliance: Both accounts and confirmation statements are filed on time with no overdue filings, demonstrating good regulatory compliance and governance.
• Stable Directorship and Ownership: Single director with direct involvement and a clear PSC controlling 25-50% shares and voting rights, suggesting stable management and ownership structure.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£236,250) to understand repayment obligations, interest rates, and impact on cash flows.
• Review cash flow statements and profit & loss accounts (not provided) to assess operational sustainability and ability to service debts.
• Clarify the valuation basis for current and fixed assets (£378,623) to determine asset quality and potential liquidity in a distressed scenario.
• Assess the business model viability given limited employees (1) and early stage, especially in property letting and development sectors.
• Confirm the director’s and PSC’s experience and financial backing to support ongoing operations.