J & R HOME LETTINGS LTD

Executive Summary

J & R HOME LETTINGS LTD displays a high risk profile primarily due to persistent negative net working capital and very low equity levels, suggesting potential liquidity and solvency challenges. While it maintains statutory compliance and stable fixed assets, the absence of operational scale and limited current assets raise concerns on sustainability without further financial strengthening or operational improvement.

J & R HOME LETTINGS LTD - Analysis Report

Company Number: 13629448

Analysis Date: 2025-07-29 13:42 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity strain as evidenced by a substantial negative net current assets position across all reported years. The micro-entity status and lack of employees further suggest limited operational scale and resilience.

2. Key Concerns:

• Liquidity Deficit: Current liabilities far exceed current assets by approximately £190k consistently, indicating potential cash flow difficulties to meet short-term obligations.
• Operational Scale: No employees recorded and minimal current assets imply limited operational activity and potentially undeveloped business processes.
• Thin Equity Buffer: Net assets remain very low (£3,178 in 2024), showing minimal equity cushion against liabilities, which raises solvency concerns if obligations increase or revenues decline.

3. Positive Indicators:

• Asset Base Stability: Fixed assets have remained stable at £194,664 over the four years, indicating consistent investment in long-term assets which could be leveraged or sold if needed.
• Compliance: The company is up to date with filing requirements and has no overdue accounts or confirmation statements, reflecting good governance on statutory compliance.
• Company Status: The company remains active and not in liquidation or administration, indicating it is continuing to operate without formal financial distress processes.

4. Due Diligence Notes:

• Investigate the composition and liquidity of the fixed assets to assess if they can be readily converted to cash if required.
• Review cash flow statements and payment profiles to understand how the company manages to meet current liabilities given the negative working capital.
• Explore revenue generation and profitability trends, as no profit and loss account was filed, limiting insight into operational performance.
• Confirm whether there are any related party transactions or contingent liabilities not reflected in the balance sheet.
• Examine eventual plans for business scaling or restructuring given the lack of employees and minimal current assets.