J & S PROPERTY PORTFOLIO LTD

Executive Summary

J & S Property Portfolio Ltd has a solid property asset base underpinning its balance sheet but is in an early growth phase with limited equity and modest cash reserves. The company’s current liabilities are primarily long-term, and short-term liquidity appears adequate. Credit approval is recommended conditionally, subject to confirmation of stable rental income or refinancing to support debt obligations and working capital needs.

J & S PROPERTY PORTFOLIO LTD - Analysis Report

Company Number: 14527935

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

1. Credit Opinion: CONDITIONAL APPROVAL
   J & S Property Portfolio Ltd is an early-stage private limited company operating in real estate letting. The company shows a positive net asset position of £9,524 as of May 2024, improving from a small net deficit the prior year. However, current liabilities of £452,500 heavily outweigh current assets of £35,846, indicating potential liquidity strain. The company’s tangible fixed assets (freehold property) valued at £451,147 provide strong collateral. Given the company’s short trading history and current working capital deficit, credit approval should be conditional upon evidence of ongoing cash inflows or refinancing arrangements to service short-term payables and loan obligations.

2. Financial Strength
   The balance sheet reflects fixed assets of £451,147, representing freehold land and buildings, which form the core asset base and a solid collateral foundation. The company’s net assets have risen from a deficit of £800 in 2023 to a positive £9,524 in 2024, indicating modest equity growth. However, the current liabilities of £452,500 are substantial relative to current assets of £35,846, resulting in a negative net working capital (current assets minus current liabilities) of £-416,654 if considering liabilities fully. Note that the accounts show a net current assets figure of £33,955, which likely reflects deductions for some short-term creditors (creditors falling due within one year are shown as £2,234, seemingly inconsistent with the £452,500 current liabilities figure—this may indicate that the large £452,500 is classified as long-term debt). The accounts clarify £452,500 as creditors falling due after more than one year, so current liabilities of £2,234 are manageable. Overall, the company’s financial strength is anchored by property assets but limited equity and low cash reserves warrant cautious monitoring.

3. Cash Flow Assessment
   Cash at bank and in hand has decreased from £45,233 in 2023 to £34,160 in 2024, representing a moderate liquidity buffer. Debtors are minimal at £1,686, and trade creditors within one year are low at £2,234, indicating short-term obligations are currently manageable. The company has a small workforce (2 employees including directors), limiting fixed overheads. However, the company’s ability to generate consistent operating cash flow is unconfirmed due to lack of P&L disclosure and early stage. The positive working capital of £33,955 offers some short-term liquidity cushion, but dependency on rental income or capital injection to meet ongoing debt service and operational expenses remains critical.

4. Monitoring Points

• Track rental income consistency and growth to ensure sufficient cash generation to cover liabilities and debt service.
• Monitor cash balances monthly to avoid liquidity shortfalls.
• Review any new borrowing or refinancing arrangements, especially related to the £452,500 long-term liabilities.
• Watch for changes in property valuations or impairment risks.
• Scrutinize management’s ability to control costs and increase equity through retained earnings or capital injections.
• Confirm timely filing of future accounts and confirmation statements for ongoing compliance and transparency.