JG PROPERTIES (DUNDEE) LIMITED

Executive Summary

JG PROPERTIES (DUNDEE) LIMITED faces high financial risk primarily due to its negative net assets and significant working capital deficit, compounded by substantial director loans. While investment property holdings have increased and statutory filings are up to date, the company’s liquidity position and reliance on related party financing are key concerns requiring further examination. Investors should conduct detailed due diligence on asset valuations, cash flows, and related party arrangements before considering exposure.

JG PROPERTIES (DUNDEE) LIMITED - Analysis Report

Company Number: SC679869

Analysis Date: 2025-07-29 20:32 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns due to persistent negative net assets and net current liabilities, indicating that it is not currently able to cover its short-term obligations with available current assets.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company reported net liabilities of £858 as of 31 March 2023, worsening from prior years, which signals an erosion of equity and potential solvency risk.
• Severe Working Capital Deficit: Net current liabilities stand at approximately £191,721, primarily driven by high current liabilities (£195,647) compared to minimal current assets (£3,926), suggesting liquidity stress and possible cash flow difficulties.
• High Related Party Creditors: Other creditors include £185,073 owed to directors, which may indicate reliance on director financing rather than external funding sources, potentially compromising operational independence and long-term sustainability.

3. Positive Indicators:

• Investment Property Asset Growth: The company’s investment property assets increased materially to £272,940 from £165,000, reflecting active asset acquisition and potential for capital appreciation or rental income.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, evidencing compliance with statutory filing requirements and no immediate regulatory concerns.
• Stable Directorship: Directors have been in place since incorporation with no resignations or disqualifications reported, which may indicate governance stability.

4. Due Diligence Notes:

• Assess Recoverability and Valuation of Investment Properties: Verify the market values and liquidity of the investment properties to understand if these assets can support the company’s liabilities or be monetised if necessary.
• Review Director Loans and Related Party Transactions: Investigate the terms, repayment schedules, and security of amounts owed to directors to evaluate financial risk and potential conflicts of interest.
• Examine Cash Flow Projections and Funding Plans: Given the working capital deficit, assess the company’s ability to generate positive operating cash flows or secure additional funding to meet short-term obligations.
• Understand Revenue Streams and Profitability: Limited disclosure on turnover and profit and loss details necessitates further inquiry into the company’s trading performance and sustainability of income.
• Investigate Absence of Audit: The company is exempt from audit; however, the lack of an independent audit may limit the reliability of the financial statements, so supplementary verification may be advisable.