JAMES LEWIS PROPERTY LETTING LTD

Executive Summary

James Lewis Property Letting Ltd is a small private company with a strong asset base in investment property supporting its net worth. However, the emergence of net current liabilities and significant director loans create moderate liquidity and solvency risks. The company remains compliant with filings and showed a profitable year, but further due diligence on cash flow and debt obligations is recommended to confirm financial resilience.

JAMES LEWIS PROPERTY LETTING LTD - Analysis Report

Company Number: 13138456

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: MEDIUM
   The company's financials indicate some liquidity stress but overall solvency appears intact due to substantial fixed assets. However, negative net current assets and significant long-term liabilities warrant caution.

2. Key Concerns:

• Liquidity Pressure: The current year shows net current liabilities of £5,358 compared to positive net current assets the prior year, indicating tighter short-term liquidity.
• High Long-Term Director Loans: £201,000 owed to directors as non-current liabilities is a material obligation that may impact cash flows if repayment terms are not favorable.
• Small Equity Base and Retained Losses: Share capital is only £100 with retained earnings negative at £2,963, which limits the company’s financial buffer against adverse events.

3. Positive Indicators:

• Significant Investment Property Asset: Fixed assets valued at £271,000 provide strong collateral and underpin net asset value of £52,041.
• Profitability Improvement: The company reported a profit of £2,419 for the year ended 31 Jan 2024, reversing prior accumulated losses.
• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.

4. Due Diligence Notes:

• Review Director Loans: Investigate terms and repayment schedule of the £201,000 director loans to assess risk of calls on cash or potential for restructuring.
• Cash Flow Analysis: Obtain management accounts or cash flow forecasts to understand how the company plans to manage short-term liabilities given negative working capital.
• Valuation and Market Exposure: Confirm the valuation methodology for investment property and assess market conditions impacting the asset's liquidity and income generation.
• Verify absence of contingent liabilities or pending litigation that may affect financial stability.