J.B.H.LIMITED
Company number 00370375 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: J.B.H. LIMITED
1. Credit Opinion: CONDITIONAL APPROVE
Rationale: J.B.H. Limited presents a fundamentally sound credit profile with substantial net assets (£3.18M), negligible leverage, and consistent asset growth. The conditional element relates to the absence of income statement data—filleted small company accounts do not require P&L disclosure—meaning rental income and operating profitability cannot be directly verified. The core balance sheet metrics strongly support creditworthiness, but any facility should incorporate covenants requiring periodic profit & loss confirmation.
2. Financial Strength
Balance Sheet Summary (FY2025):
| Metric | £ | Assessment |
|---|---|---|
| Investment Property | 3,186,549 | Core asset, professionally referenced valuation |
| Net Current Assets | 261,805 | Healthy working capital position |
| Net Assets | 3,182,790 | Substantial equity base |
| Shareholders' Funds | 3,182,790 | Consistent with net assets |
| Current Liabilities | 164,958 | Modest obligations |
| Provisions (Deferred Tax) | 265,564 | Tax on unrealised property gains |
Key Observations:
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Leverage is minimal. Total liabilities (£164,958 current + £265,564 provisions) represent approximately 13.5% of net assets. There is no visible bank debt, trade creditor concentration, or contingent liabilities.
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Asset quality is strong. The investment property portfolio (£3.19M) has shown steady appreciation—£80,000 revaluation gain in FY2025, following a £31,908 gain in FY2024. The property is valued by directors with reference to market evidence, though an independent valuation would strengthen confidence.
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Equity composition is appropriate. The capital structure includes £200,000 share capital, £1.33M capital reserves (preserving property disposal gains), £1.10M non-distributable revaluation reserves, and £556,021 retained earnings. This indicates conservative financial management with profits being retained rather than distributed.
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Five-year trajectory is stable growth:
| Year | Net Assets | YoY Change |
|---|---|---|
| 2021 | 3,051,710 | — |
| 2022 | 3,155,179 | +3.4% |
| 2023 | 3,074,991 | -2.5% |
| 2024 | 3,098,641 | +0.8% |
| 2025 | 3,182,790 | +2.7% |
The 2023 dip likely reflects a property revaluation downward, but recovery was swift. Overall trajectory is positive.
3. Cash Flow Assessment
Liquidity Position:
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Cash | 340,846 | 316,950 | +7.5% |
| Debtors | 85,917 | 67,633 | +27.0% |
| Current Liabilities | 164,958 | 147,096 | +12.1% |
| Current Ratio | 2.59x | 2.62x | Stable |
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Current ratio of 2.59x is comfortable and consistent with prior years. The company can comfortably meet short-term obligations.
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Cash generation appears solid. Cash has grown from £267,350 (2023) to £340,846 (2025), a 27.4% increase over two years, suggesting rental income exceeds operating costs and distributions.
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Working capital of £261,805 provides adequate buffer for a property company with 4 employees and minimal trade creditor pressure.
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Debtors increased by 27% year-on-year. This warrants monitoring—rent arrears or slow-paying tenants could signal emerging stress, though the absolute amount (£85,917) is modest relative to the asset base.
Limitation: Without P&L disclosure, debt service coverage ratios and operating cash flow margins cannot be calculated. Rental income is the presumed primary revenue source, but quantum and consistency are unverified.
4. Monitoring Points
| Metric | Target/Threshold | Rationale |
|---|---|---|
| Rental income verification | Request annually | Confirm cash generation supports any debt servicing |
| Property revaluation movements | No decline >10% without trigger | Significant revaluation downward could erode equity cushion |
| Current ratio | Maintain >1.5x | Early warning of liquidity stress |
| Debtors ageing | Monitor quarterly if facility granted | Rising debtors may indicate tenant financial difficulty |
| Provisions movement | Track deferred tax annually | Large revaluation gains create deferred tax exposure on disposal |
| PSC disclosure | Clarify beneficial ownership | Current PSC register shows only a statement, not identified individuals—this should be resolved for KYC compliance |
Additional Considerations:
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Company longevity (incorporated 1941) provides significant comfort regarding operational continuity and management experience.
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Four directors plus a secretary suggests adequate governance depth for a small entity. No director disqualification records are flagged.
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Audited accounts (by Hardcastle Burton LLP) provide third-party verification, though the audit scope for small companies is limited.
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The £200,000 share capital is substantial for a small company, indicating long-standing capital commitment from shareholders.
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No visible bank borrowings in the balance sheet. If the company is debt-free, any new facility would represent first-lien positioning, which is advantageous from a creditor perspective.