JAMES LAVIS PROPERTY SERVICES LTD

Executive Summary

James Lavis Property Services Ltd is an early-stage small company with limited operating history and weak financial metrics, including negative working capital and low cash balances. Credit approval is conditional on modest facility size, director support, and close ongoing monitoring due to liquidity risks and unproven trading performance. The company’s future creditworthiness will depend largely on its ability to generate positive cash flows and reduce reliance on director loans.

JAMES LAVIS PROPERTY SERVICES LTD - Analysis Report

Company Number: 14779229

Analysis Date: 2025-07-20 15:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   James Lavis Property Services Ltd is a recently incorporated small private limited company with limited operating history (less than one full financial year). The financial position as of 30 April 2024 shows a net asset base of £4,398, primarily from intangible fixed assets (£20,000) and some tangible assets (£439). However, the company has negative working capital of £16,041, due to current liabilities (£17,600) exceeding current assets (£1,559). The significant portion of liabilities is a director loan (£15,287), which provides some internal funding flexibility but also indicates reliance on directors for liquidity. Given the early stage and lack of operating revenue data, the company’s ability to service external debt is unproven. Approval can be considered if credit facilities are modest, short-term, and structured with close monitoring and possibly director guarantees.

2. Financial Strength:
   The balance sheet is thinly capitalized with net assets of £4,398 and a negative working capital position. The asset base is primarily intangible assets of £20,000 (likely software or intellectual property), which are not readily liquid. Tangible fixed assets are minimal (£439). Current liabilities mainly consist of director loans and statutory dues (VAT and taxes). The absence of trade creditors or operating liabilities suggests limited trading activity to date. The company has not yet generated reported profits or a P&L reserve, indicating an early development phase. Overall, financial strength is weak and dependent on director support.

3. Cash Flow Assessment:
   Cash on hand is very low at £1,559, with short-term liabilities amounting to £17,600, creating a liquidity strain. The working capital deficit implies operational cash flow is negative or non-existent at this stage. The director loans provide critical short-term funding but also represent a potential repayment obligation. Without evidence of turnover or positive cash flow from operations, the company’s immediate cash flow position is precarious. This raises concerns about its ability to meet short-term obligations without continued director support or infusion of external capital.

4. Monitoring Points:

• Track revenue growth and turnover development in subsequent accounts to assess operational viability.
• Monitor changes in working capital and director loan balances to evaluate liquidity trends.
• Review cash flow statements when available to understand cash generation capability.
• Watch for timely fulfilment of statutory filings and payments to avoid compliance risk.
• Assess any changes in director involvement or new external financing arrangements.