JAZARA PROPERTIES LIMITED

Executive Summary

Jazara Properties Limited is an active private limited company primarily engaged in property letting with a growing asset base. While it maintains positive net assets, significant liquidity risk is present due to current liabilities far exceeding current assets, raising concerns about short-term cash flow management. The company appears compliant with regulatory filings, but further investigation into its liabilities and cash flow sustainability is recommended.

JAZARA PROPERTIES LIMITED - Analysis Report

Company Number: SC683648

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: MEDIUM

Justification: Jazara Properties Limited demonstrates a moderate solvency position with positive net assets (£65,122 as of 31 December 2023) largely due to increased fixed assets (property holdings). However, the company exhibits significant liquidity concerns, with high current liabilities (£437,995) considerably exceeding current assets (£12,851), resulting in a negative net current asset position (-£425,144). This mismatch suggests potential short-term cash flow stress despite overall positive equity.

2. Key Concerns:

• Liquidity Risk: The company’s current liabilities vastly exceed its current assets and cash holdings, indicating possible difficulties in meeting short-term obligations without refinancing or asset disposals.
• Reliance on Fixed Assets: A large proportion of total assets are tied up in tangible fixed assets (property), which may not be readily liquidated to cover immediate liabilities.
• Limited Equity Base: Share capital is nominal (£4), and accumulated reserves are modest, which may limit the company’s ability to absorb financial shocks or losses.

3. Positive Indicators:

• Growing Asset Base: The company has increased its fixed assets significantly from £253k in 2022 to £490k in 2023, indicating expansion or acquisition of property assets.
• Compliance and Filing: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
• Established Control Structure: Clear identification of persons with significant control and multiple directors actively appointed, suggesting formal governance arrangements.

4. Due Diligence Notes:

• Investigate nature and terms of current liabilities, specifically the creditors amounting to £430k, to assess repayment schedules, interest obligations, and refinancing risk.
• Review cash flow statements and budget forecasts to evaluate the company’s ability to generate operating cash flows sufficient to meet short-term liabilities.
• Assess the valuation and marketability of the tangible fixed assets to understand how readily these could be monetized if liquidity issues arise.
• Verify the underlying business model and income streams given the company’s SIC code (68209 – letting and operating own or leased real estate), and confirm whether rental income or other revenues sufficiently cover costs.
• Examine director backgrounds and related-party transactions, especially considering multiple directors share the same registered address, to ensure governance robustness.