JEB PROPERTIES LTD

Executive Summary

JEB PROPERTIES LTD shows significant financial distress with zero turnover and a severe liquidity deficit, indicated by current liabilities vastly exceeding current assets. Despite significant fixed assets, the company’s financial health is fragile, warranting urgent action to boost revenue and restructure debts. Without intervention, the prognosis for financial stability remains poor.

JEB PROPERTIES LTD - Analysis Report

Company Number: SC684567

Analysis Date: 2025-07-29 19:51 UTC

Financial Health Assessment for JEB PROPERTIES LTD

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1. Financial Health Score: D

Explanation:
The company shows chronic symptoms of financial distress. While fixed assets are significant, the extreme imbalance between current liabilities and current assets indicates liquidity stress. The net asset value is minimal (£100), which is a red flag for solvency. The score reflects a fragile financial condition requiring urgent attention.

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2. Key Vital Signs

Vital Sign	2023 Value	Interpretation
Turnover	£0 (last 2 years)	Absence of revenue suggests no trading activity or income generation, raising sustainability concerns.
Fixed Assets	£152,000	Significant investment in property/assets, core to business operations.
Current Assets	£294	Extremely low liquid assets, indicating poor short-term cash availability.
Current Liabilities	£120,261	High short-term debts, likely pressuring cash flow and operational capacity.
Net Current Assets	-£119,967	Negative working capital - "symptom of liquidity distress", inability to cover short-term obligations.
Total Assets less Current Liabilities	£32,033	Indicates some buffer but much eroded by liabilities.
Creditors due after one year	£31,133	Long-term liabilities also significant, adding to debt burden.
Net Assets / Shareholders Funds	£100	Equates to share capital only; no retained earnings or reserves, signalling no accumulated profits.

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3. Diagnosis

JEB PROPERTIES LTD is in a precarious financial state akin to a patient with a weak heart and poor circulation. The substantial fixed assets reflect investment in real estate, consistent with its SIC code for property letting and operation. However, the company is not generating turnover, which is a critical concern—akin to a non-functioning vital organ. The liquidity position is severely impaired, with current liabilities far exceeding current assets, indicating a serious cash flow problem.

The minimal net assets and shareholders’ funds show that there is no equity cushion to absorb shocks, exposing the company to solvency risk. The increasing current liabilities coupled with negligible current assets is a clear symptom of financial distress. The company may be reliant on external financing or shareholder loans to meet obligations, which is unsustainable long-term without income.

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4. Recommendations

• Improve Revenue Generation: Immediate focus should be on activating or increasing income streams. Explore leasing opportunities or other revenue-generating activities aligned with property assets.
• Address Liquidity Crisis: Negotiate with creditors to restructure short-term liabilities, possibly convert some current liabilities into longer-term debts to ease cash flow.
• Cost Control and Cash Management: Implement stringent cost controls. Avoid unnecessary expenditures and monitor cash flow meticulously to avoid insolvency.
• Seek Professional Advice: Engage financial restructuring advisors to develop a viable turnaround plan.
• Equity Injection: Consider capital injection from shareholders or new investors to strengthen net assets and restore financial stability.
• Regular Monitoring: Establish regular financial review cycles to detect symptoms of distress early and respond promptly.

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