Company Number: 13711790

Analysis Date: 2025-07-29 16:51 UTC

Financial Health Assessment of J & Them Property Ltd

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1. Financial Health Score: B

Explanation:
J & Them Property Ltd exhibits a solid financial foundation with positive net assets and shareholders’ funds that have nearly doubled in the latest year. The company holds valuable fixed assets (investment property) with stable valuation. However, the presence of significant long-term liabilities and slightly negative working capital signals some financial stress symptoms that should be monitored. Overall, the company is financially stable but with cautionary signs that prevent a top grade.

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2. Key Vital Signs

Metric	2024 Figure (£)	Interpretation
Fixed Assets	532,728	Stable investment property value; no depreciation applied (fair value accounting). This is the company’s core asset. Healthy "bone structure".
Current Liabilities	400,083	Substantial short-term obligations, mostly group loans. Requires liquidity monitoring.
Net Current Assets (Working Capital)	-2,160	Slightly negative, implying current liabilities marginally exceed current assets. "Minor circulation issue" that could affect day-to-day operations.
Net Assets (Equity)	130,485	Positive and growing equity, indicating value retained by shareholders and improved solvency. A "healthy heart" sign.
Share Capital	100	Nominal capital; reflects small equity base.
Long-Term Liabilities	400,083	Large debt owed to group undertakings. Represents a financial "load" but manageable given asset backing.
Profit & Loss Reserves	130,385	Accumulated profits retained in the business, a good indicator of operational success or capital appreciation.

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3. Diagnosis

• Asset Strength:
  The company’s fixed assets consist solely of investment property valued at £532,728, unchanged from prior years. The use of fair value accounting means this asset is marked to market, giving a reliable valuation. This represents a strong and stable "skeletal framework" for the business.

• Liquidity and Working Capital:
  The company has current liabilities of £400,083 with net current assets slightly negative at -£2,160, indicating a "minor cash flow congestion." This means the company may face some short-term liquidity pressure and should monitor its ability to meet immediate obligations as they fall due.

• Leverage and Solvency:
  Long-term liabilities of £400,083 are substantial relative to net assets but appear to be intra-group loans, which may offer flexible repayment terms. The positive net assets of £130,485, improved from £66,500 the previous year, suggest the company is solvent and building equity, akin to a "strengthening immune system."

• Profitability and Reserves:
  Retained earnings (profit and loss reserve) have grown significantly to £130,385, indicating the company is retaining profits or benefiting from asset revaluations. Profitability is not explicitly reported, but this reserve growth is a positive sign, reflecting a "healthy metabolism."

• Governance and Control:
  The company is controlled by Ape Manchester Limited (holding 75-100% shares and voting rights), providing stability in ownership. Directors appear actively engaged with no signs of disqualification or governance issues.

• Filing and Compliance:
  Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and administrative health.

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4. Recommendations

• Improve Working Capital Management:
  Address the slight negative working capital by either accelerating receivable collections, reducing payables or increasing short-term liquidity reserves to ensure smooth operational cash flow and avoid "circulatory strain."

• Review Debt Structure:
  Engage with the group undertaking creditor regarding the £400k loan to clarify repayment terms, potential refinancing, or restructuring to reduce "financial load" and improve balance sheet flexibility.

• Enhance Profit Reporting:
  Consider publishing fuller profit and loss details to provide stakeholders with clearer insights into operational performance and cash flows, improving transparency and decision-making.

• Monitor Asset Valuations:
  Maintain regular fair value assessments of investment property to detect any early "symptoms" of market value changes that could affect financial health.

• Prepare for Growth or Contingency:
  Build cash reserves or access credit lines to manage any unexpected expenses or opportunities, ensuring the business remains agile and resilient.

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