Company Number: 12918807

Analysis Date: 2025-07-20 13:52 UTC

Financial Health Assessment of Jellijam Properties Ltd (as at 31 October 2024)

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1. Financial Health Score: D

Explanation:
The company exhibits concerning signs of financial distress, primarily due to negative net assets and persistent liabilities exceeding assets. While there is a modest improvement in net current assets this year, the overall balance sheet shows an ongoing struggle to maintain a healthy equity position. This grade reflects a borderline financial condition requiring prompt attention to avoid worsening.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets (Shareholders' Funds)	-£4,075	Negative equity indicates liabilities exceed assets, a symptom of financial strain.
Fixed Assets	£167,311	Healthy level of tangible fixed assets (property), consistent with real estate business.
Current Assets	£7,823	Low current assets, but increased from prior year, showing some improvement in liquidity.
Cash at Bank	£7,665	Cash position improved significantly from £1,739 last year, a vital sign of better cash flow.
Current Liabilities	£175,596	High current liabilities, much larger than current assets, indicating working capital challenges.
Net Current Assets	£4,210	Positive net current assets this year, a critical improvement indicating healthier short-term liquidity.
Long-term Liabilities	£175,596	Substantial long-term debts, showing significant leverage.
Share Capital	£2	Minimal share capital, typical of a small private company.

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3. Diagnosis: What the Financial Data Reveals

Jellijam Properties Ltd operates in the real estate letting sector, with substantial investment in tangible fixed assets (likely property holdings). The company has shown some improvement in liquidity, demonstrated by increased cash and net current assets in the latest year, which is a positive sign of "healthy cash flow" returning.

However, the persistent negative net assets (equity) indicate that the company's total liabilities, including bank loans and other creditors, still exceed its total assets. This "symptom of distress" suggests the company is highly leveraged and may be under financial pressure from debt obligations.

The large current and long-term liabilities relative to current assets imply constrained working capital and potential difficulty in meeting short-term obligations without further capital injections or improved operational cash flow.

Overall, the company is in a fragile financial condition but showing early signs of stabilisation in liquidity. The negative shareholders’ funds are a red flag for solvency risks, but no audit or insolvency proceedings are indicated at this time.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Strengthen Equity Base: Consider increasing share capital or securing equity investment to improve net assets and reduce solvency risk.
• Debt Management: Explore refinancing or restructuring existing long-term liabilities to reduce immediate repayment pressures and improve cash flow stability.
• Improve Working Capital: Accelerate debtor collections, manage creditor terms prudently, and optimise cash reserves to maintain positive net current assets.
• Operational Efficiency: Review rental income streams and cost structures to ensure profitability and generate sustainable cash flows to service debt.
• Financial Monitoring: Implement regular financial health checks and cash flow forecasts to anticipate liquidity needs and avoid "symptoms of financial distress."
• Engage Financial Advisors: Seek professional advice on capital restructuring and debt management to navigate current challenges.

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