JAMESON PROPERTIES LIMITED

Executive Summary

Jameson Properties Limited holds a stable asset base primarily in investment properties with modest equity growth. However, a significant negative working capital position and reliance on a director loan for short-term liquidity present risk to timely creditor payments. Conditional approval is recommended pending assurance on liquidity management and refinancing arrangements to support ongoing operations.

JAMESON PROPERTIES LIMITED - Analysis Report

Company Number: SC687198

Analysis Date: 2025-07-29 15:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Jameson Properties Limited is a property investment company holding six investment properties valued at £521,300. The company shows stable net asset growth and positive equity, indicating underlying capital strength. However, the current liabilities significantly exceed current assets by £164,863, resulting in a working capital deficit. This liquidity shortfall is largely represented by other creditors (£182,766) and a director loan (£17,643) repayable on demand with no interest charged, indicating reliance on related party funding. Given the company’s small scale and limited cash reserves (£1,748), the ability to meet short-term obligations without refinancing or asset disposals is constrained. The director is experienced and maintains control, but monitoring of cash flow and creditor management is essential. Approval is recommended on condition that the company provides evidence of sustainable short-term liquidity management or refinancing arrangements.

2. Financial Strength:
   The company’s balance sheet is asset-backed with investment properties held at fair value of £521,300 unchanged from prior years. Shareholders’ funds have modestly increased from £345,000 to £356,437 over the last two years, reflecting retained earnings of £11,437 as of the latest accounts. Fixed assets dominate the asset base, showing capital stability. However, the company has a consistent working capital deficit around £165,000 due to high short-term creditors of approximately £184,000, which indicates potential cash flow timing issues. The loan from the director (£17,643) without interest and repayable on demand suggests informal financing arrangements that may pose risk if called prematurely.

3. Cash Flow Assessment:
   Cash on hand is very low (£1,748), insufficient to cover current liabilities. Debtors increased to £17,643 but are still insufficient to cover the creditor balances. The persistent negative net current assets position signals liquidity pressure. The company’s operating cash inflows from rental income are not disclosed but are critical to monitor given the reliance on investment properties. The director loan’s repayable on demand status can be a liquidity risk if the lender demands repayment unexpectedly. There is no evidence of external borrowings beyond related party loans, which limits financial flexibility.

4. Monitoring Points:

• Monitor working capital trends, particularly the current asset to liability ratio and cash balances.
• Track debtor collection and creditor payment terms to avoid liquidity strain.
• Confirm the status and terms of the director loan and any plans for refinancing or capital injection.
• Review rental income stability and property occupancy to ensure steady cash inflows.
• Watch for any changes in asset valuations or write-downs impacting net asset value.
• Ensure timely filing of accounts and confirmation statements continue to avoid compliance risk.