JET PROPERTY CARDIFF LIMITED

Executive Summary

JET Property Cardiff Limited’s financials reveal a concerning liquidity mismatch and weak working capital, despite holding significant investment property assets. The company’s cash flow position is strained, raising doubts about its ability to meet short-term obligations. Credit extension is not recommended without substantial improvement in liquidity or secured collateral arrangements.

JET PROPERTY CARDIFF LIMITED - Analysis Report

Company Number: 13133554

Analysis Date: 2025-07-20 11:17 UTC

1. Credit Opinion: DECLINE
   JET Property Cardiff Limited exhibits significant liquidity risk with very high current liabilities (£1.2m) vastly exceeding current assets (cash of only £14k), resulting in a large negative working capital position (-£1.19m). Although the company holds investment property valued at £1.25m, the mismatch between liquid assets and short-term obligations raises concerns about its ability to service debt promptly. The absence of profitability disclosures and continued net current liability position over multiple years suggest weak operational cash flow generation. Without evidence of additional liquidity sources or creditor support, the company is currently not a suitable candidate for credit extension beyond very limited or secured facilities.

2. Financial Strength:
   The balance sheet reflects modest net assets (£60k) supported primarily by investment property (£1.25m), but this is offset by substantial current liabilities exceeding £1.2m. Shareholders’ funds remain minimal, indicating limited equity buffer. The company has increased its asset base somewhat through property additions, yet this has not translated into improved liquidity or working capital. The financial structure is asset-heavy but cash-poor, increasing refinancing and short-term risk. The single director’s control and limited share capital do not provide additional reassurance on governance or capital injection capacity.

3. Cash Flow Assessment:
   Cash on hand has dramatically decreased from £203k in the prior year to just £14k, signaling potential cash flow strain. Persistent negative net current assets over four consecutive years reflect ongoing working capital deficits. The company does not appear to generate sufficient operating cash flow to meet current obligations, relying on property valuation rather than cash earnings. This liquidity shortfall suggests difficulty in meeting immediate liabilities or unexpected expenses without external funding.

4. Monitoring Points:

• Monitor liquidity trends, especially cash balances and short-term creditor levels.
• Watch for changes in investment property valuations and asset disposals that might impact collateral value.
• Track any capital injections or shareholder loans that could improve working capital.
• Review future filings for evidence of profitability or improved cash flow generation.
• Observe director actions and any changes in company structure that affect financial resilience.