JBRE CAPITAL LTD

Executive Summary

JBRE CAPITAL LTD is currently experiencing symptoms of financial distress, primarily reflected in negative working capital and fragile shareholder equity. Although there is a slight improvement in the latest year, urgent steps are needed to restore liquidity and strengthen the capital base. With focused cash management, cost control, and possible capital injection, the company can improve its financial health and build resilience for future growth.

JBRE CAPITAL LTD - Analysis Report

Company Number: 14225580

Analysis Date: 2025-07-20 11:13 UTC

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Financial Health Assessment Report for JBRE CAPITAL LTD

Assessment Date: April 2025
Company Number: 14225580
Industry: Real Estate Management and Operations (SIC 68xxx series)
Company Size: Micro Entity (Turnover and balance sheet within micro thresholds)

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1. Financial Health Score: D (Needs Improvement)

Explanation:
JBRE CAPITAL LTD shows several concerning financial "vital signs" indicating early symptoms of financial distress. The company has a weak liquidity position with persistent negative working capital and low shareholder equity, though there has been a slight improvement in net assets. This suggests the business is struggling to maintain a healthy cash flow and meet short-term obligations comfortably. Without corrective action, the company risks deeper financial strain.

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2. Key Vital Signs

Vital Sign	2024 Value	Interpretation
Fixed Assets	£195,448	Significant investment in long-term assets, suggesting capital tied up in real estate assets.
Current Assets	£137,667	Cash and short-term assets have decreased substantially from previous year — a red flag.
Current Liabilities	£329,576	High short-term debts exceeding current assets by a large margin — liquidity concern.
Net Current Assets (Working Capital)	-£191,909	Negative by a wide margin, indicating inability to cover short-term debts with liquid assets.
Total Assets Less Current Liabilities	£3,539	Slightly positive, showing some improvement from prior negative position but still fragile.
Shareholders Funds (Equity)	£1,559	Marginal positive equity after prior negative balance, indicating very thin capital buffer.

Summary:

• Liquidity Weakness: The company has a "symptom" of poor liquidity, with current liabilities more than double current assets, signaling difficulty paying bills on time.
• Capital Structure: Very low positive shareholder funds reflect fragile equity, meaning creditors may have limited protection.
• Asset Composition: High fixed assets suggest capital is invested in property, but this may not be easily liquidated to meet short-term needs.
• Trend: Improvement from negative net assets in 2023 to marginal positive in 2024 is a positive sign but remains weak.

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3. Diagnosis: Financial Condition Assessment

JBRE CAPITAL LTD is currently in a financially fragile state resembling a patient with chronic liquidity issues and a weak capital base. The company’s negative working capital over consecutive years is a key symptom of distress, indicating ongoing challenges in managing cash flow and short-term obligations. The slight positive shift in net assets and shareholder equity in the latest year offers some hope but is not yet a sign of robust health.

The underlying business model, focused on real estate management and operation, is capital intensive, which explains the relatively high fixed assets. However, the decline in current assets—likely cash or receivables—alongside increasing current liabilities, suggests operational cash flow pressures that could threaten solvency if not addressed rapidly.

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4. Recommendations for Improving Financial Wellness

To stabilize and improve its financial health, JBRE CAPITAL LTD should consider the following actions, akin to a treatment plan to restore vitality:

1. Improve Liquidity (Restore Healthy Cash Flow):

   • Accelerate collection of receivables and optimize cash management.
   • Negotiate extended payment terms with suppliers or creditors to ease short-term cash demands.
   • Consider short-term financing options cautiously to bridge liquidity gaps.

2. Strengthen Capital Base:

   • Inject additional equity capital to build a stronger financial buffer.
   • Retain profits within the business rather than distributing dividends until stability is achieved.

3. Asset Management:

   • Review fixed asset utilization; consider selling underperforming or non-core assets to raise cash.
   • Evaluate real estate holdings to ensure they generate sufficient income or capital appreciation.

4. Cost Control and Operational Efficiency:

   • Scrutinize operating expenses and overheads to reduce unnecessary costs.
   • Optimize property management operations to improve margins.

5. Financial Monitoring:

   • Implement regular cash flow forecasting and financial health monitoring to catch early warning signs.
   • Engage professional advisors for restructuring or turnaround support if needed.

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Executive Summary

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