JESUS HOUSE FOR ALL NATIONS
Company number 04047907 · 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: JESUS HOUSE FOR ALL NATIONS
1. Credit Opinion: CONDITIONAL
Rationale: The entity presents a substantial asset base (£4.5M total assets) and healthy liquidity position with no long-term debt obligations. However, the 9.1% decline in net assets year-over-year (£4,189,224 to £3,808,360) and a 49.5% increase in trade creditors raise concerns about financial trajectory. As a charitable organization limited by guarantee with donation-dependent income streams, creditworthiness is acceptable for moderate facilities but warrants monitoring for continued deterioration. Approval appropriate with standard covenants and regular financial review.
2. Financial Strength
Balance Sheet Summary (2024 vs 2023):
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Total Assets | £4,520,576 | £4,759,358 | -5.0% |
| Total Liabilities | £712,216 | £570,134 | +24.9% |
| Net Assets | £3,808,360 | £4,189,224 | -9.1% |
| Shareholders' Funds | £3,808,360 | £4,189,224 | -9.1% |
Key Observations:
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Strong Asset Base: Net assets of £3.8M provide substantial cushion. The entity is debt-free beyond current liabilities, with no long-term borrowings visible on the balance sheet.
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Investment Property: The £2.65M investment (long-lease property) represents 58.6% of total assets and provides significant collateral value. This asset has been held at consistent value, suggesting stable property holdings.
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Tangible Asset Growth: Net tangible assets increased from £126,364 to £200,651 following £146,973 in additions—likely capital improvements to facilities, indicating ongoing investment in operational infrastructure.
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Equity Erosion: The £380,864 decline in net assets suggests an operating deficit for the year. Without a filed P&L, the exact loss cannot be confirmed, but the reduction in accumulated funds is material.
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Capital Structure: As a company limited by guarantee with no share capital, there is no equity cushion from share issuance. All reserves are accumulated from operational surpluses, making the erosion more concerning.
3. Cash Flow Assessment
Liquidity Position:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Current Assets | £1,669,925 | £1,982,994 | -15.8% |
| Current Liabilities | £712,216 | £570,134 | +24.9% |
| Net Current Assets | £957,709 | £1,412,860 | -32.2% |
| Current Ratio | 2.34x | 3.48x | Deteriorated |
Cash & Liquid Assets: - Cash at bank: £1,138,329 (down 1.5% from £1,156,165) - Debtors: £500,748 (down 37.1% from £795,981) - Stocks: £30,848 (unchanged)
Creditor Analysis:
| Creditor Type | 2024 | 2023 | Change |
|---|---|---|---|
| Trade Creditors | £449,475 | £300,710 | +49.5% |
| Taxation & Social Security | £123,959 | £118,888 | +4.3% |
| Accruals & Deferred Income | £84,556 | £87,781 | -3.7% |
| Other Creditors | £54,226 | £62,755 | -13.6% |
| Total | £712,216 | £570,134 | +24.9% |
Working Capital Concerns:
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Trade Creditor Inflation: The near-50% increase in trade creditors suggests either delayed supplier payments or increased reliance on trade credit—potential indicators of cash flow pressure.
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Debtor Contraction: The 37.1% drop in debtors (primarily prepayments and accrued income falling from £646,112 to £371,694) may indicate reduced future income recognition or timing differences in Gift Aid claims.
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Current Ratio Decline: While 2.34x remains adequate, the sharp decline from 3.48x signals deteriorating short-term financial flexibility.
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Cash Stability: Despite pressures, cash reserves remain above £1.1M, providing approximately 19 months of creditor coverage at current trade payable levels.
4. Monitoring Points
Immediate Watch Items:
| Metric | Threshold | Current Status |
|---|---|---|
| Current Ratio | Minimum 1.50x | 2.34x ✓ |
| Net Asset Decline | Maximum 5% p.a. | 9.1% ✗ |
| Trade Creditor Growth | Maximum 15% p.a. | 49.5% ✗ |
| Cash Position | Minimum £800,000 | £1,138,329 ✓ |
Ongoing Monitoring Requirements:
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Net Asset Trajectory: Request quarterly management accounts to track whether the operating deficit is reversing. Two consecutive years of 9%+ decline would signal structural sustainability issues.
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Trade Creditor Aging: Obtain aged creditor report to confirm trade payables are within normal payment terms. The 49.5% increase warrants immediate clarification—determine if this reflects capital expenditure timing or cash flow constraints.
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Income Concentration: As a religious charity, income is likely heavily dependent on congregational donations. Assess the diversity and stability of income streams, including Gift Aid reclaim patterns.
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Debtor Composition: Monitor the split between trade debtors (£7,727—minimal) and accrued income (£371,694). The significant drop in accrued income may indicate delayed Gift Aid claims or reduced donation pledging.
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Capital Expenditure Plans: The £146,973 in additions suggests ongoing facilities investment. Clarify whether further capital commitments exist that could strain cash flow.
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Related Party Transactions: No PSC register entries are visible. Confirm any related party lending or guarantee arrangements, particularly given the RCCG network connections mentioned in the directors' report.
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Filing Compliance: Accounts approved 9 September 2025 for a 31 December 2024 year-end—acceptable but note the extended timeline.
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Employee Count: Reduction from 62 to 60 average employees may indicate cost optimization or natural attrition—monitor for further declines that could signal operational contraction.
Sector Context: Religious charities typically demonstrate resilient donation income during economic stability but may face headwinds during cost-of-living crises when congregant disposable income contracts. The 24-year operating history provides some reassurance of community staying power.