J P PROPERTIES BRISTOL LIMITED

Executive Summary

J P PROPERTIES BRISTOL LIMITED shows a solid fixed asset foundation but faces liquidity challenges due to significant short-term liabilities exceeding current assets. While equity is positive and improving, the company must focus on strengthening cash flow and managing working capital to ensure financial stability. Prompt action to improve liquidity and regular financial monitoring will enhance the company’s financial wellness and long-term viability.

J P PROPERTIES BRISTOL LIMITED - Analysis Report

Company Number: 14718645

Analysis Date: 2025-07-29 18:05 UTC

Financial Health Assessment: J P PROPERTIES BRISTOL LIMITED

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1. Financial Health Score: C

Explanation:
The company shows a moderately stable asset base primarily in fixed assets, but the presence of significant net current liabilities indicates liquidity stress. The equity base is small but positive and improving slightly year on year. The overall financial health suggests a cautious outlook requiring attention to working capital management.

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2. Key Vital Signs

Metric	31-Mar-2025	Interpretation
Fixed Assets	£502,610	Strong asset base in property/assets typical for real estate business. Healthy "long-term body."
Current Assets	£12,776	Very low liquid assets; "blood supply" to meet short-term obligations is weak.
Current Liabilities	£463,859	High short-term debts; "pressure on arteries" causing liquidity strain.
Net Current Assets	-£451,083	Negative working capital; "symptom of distress," indicating operational cash flow issues.
Total Assets Less Current Liabilities	£51,527	Positive but small buffer after short-term liabilities; "organ reserve" is limited.
Shareholders Funds	£51,527	Small equity base, but increasing from prior year; "patient's immune response" improving slightly.

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3. Diagnosis

J P PROPERTIES BRISTOL LIMITED is a newly incorporated private limited company operating in the real estate sector (SIC 68209). The company holds significant fixed assets—likely property investments—forming the backbone of the business. However, the extremely low current assets coupled with substantial current liabilities results in a large negative net current asset figure. This suggests the company faces liquidity challenges, with limited liquid resources to cover short-term debts.

The company’s balance sheet shows a gradual improvement in net assets and shareholders’ funds from £15,657 to £51,527, indicating some positive equity growth. However, the negative working capital is a warning "symptom" that the company may struggle to meet immediate payment obligations without refinancing or improving cash flow.

The absence of employees and the micro-entity reporting status reflect a lean operation, but also potentially limited operational cash generation. The director, who is the sole shareholder, has full control, which could facilitate quick decision-making but also concentrates risk.

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4. Recommendations

• Improve Liquidity ("Restore Healthy Blood Flow")
  The priority is addressing the large negative net current assets. Consider negotiating extended payment terms with creditors or arranging short-term financing to ease liquidity pressures.

• Enhance Cash Reserves
  Increase current assets by accelerating receivables collection or injecting additional working capital if possible. Maintaining a healthy cash buffer will help meet short-term liabilities.

• Monitor Fixed Asset Utilization
  Ensure fixed assets are generating adequate income or returns. The property investment should be evaluated regularly to confirm it supports profitability and cash flow.

• Strategic Planning for Growth
  Develop a medium-term plan to grow equity and reduce reliance on short-term liabilities. This might include capital raising, reinvestment of profits, or operational efficiencies.

• Regular Financial Reviews
  Conduct quarterly financial "health check-ups" to monitor liquidity ratios, net assets, and cash flow trends, allowing early detection and treatment of financial distress.

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