J5 PROPERTY LTD

Executive Summary

J5 Property Ltd is a newly incorporated private limited company engaged in real estate investment activities. Its latest financials reveal significant liquidity and solvency challenges, with negative net assets and substantial current liabilities exceeding current assets. While the company maintains good filing discipline and holds investment property assets, potential investors should carefully scrutinize creditor structures, funding plans, and asset valuations before proceeding.

J5 PROPERTY LTD - Analysis Report

Company Number: 15626050

Analysis Date: 2025-07-29 12:48 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and significant current liabilities relative to cash and total assets, indicating elevated solvency and liquidity risks. The financial data reflects a startup phase with substantial creditor balances and negative equity.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £2,536 shortly after incorporation, signaling potential capital insufficiency.
• Severe Working Capital Deficit: Current liabilities (£430,094) far exceed current assets (£867), resulting in a net current liability of £429,227, which raises immediate liquidity concerns.
• Concentration of Control and Funding Risk: The sole significant controller is J5 Capital Ltd with 75-100% ownership and voting rights, indicating potential dependency on a single entity for financial support and governance.

3. Positive Indicators:

• Investment Property Asset Base: The company holds investment properties valued at £426,691, providing a tangible asset underpinning operations.
• Timely Filing Compliance: No overdue accounts or confirmation statements were noted, reflecting sound regulatory compliance and governance discipline.
• Clear Accounting Policies: The accounts adhere to FRS 102 section 1A and the small companies regime, with transparent valuation methods for investment properties, which may aid future financial clarity.

4. Due Diligence Notes:

• Nature and Terms of Creditors: Investigate the composition, maturity, and terms of the £430k current liabilities, especially the £422k classified as "other creditors." Assess whether these are trade payables, related party loans, or short-term financing.
• Funding Strategy and Capital Injection Plans: Review plans for addressing the working capital deficit and restoring positive equity, including any anticipated capital injections or asset sales.
• Valuation Methodology and Market Conditions: Verify the assumptions and market comparables used for the investment property valuation to confirm asset realizability under current market conditions.
• Related Party Transactions: Examine transactions with J5 Capital Ltd or other related entities to assess any risk of conflicts of interest or financial dependency.