J.GLOVER PROPERTIES LTD

Executive Summary

J.Glover Properties Ltd is a recently formed property management company with a weak initial financial position characterized by negative net assets and severe liquidity constraints. The absence of operating history and poor working capital suggest high credit risk, leading to a decline recommendation. Close monitoring of cash flow improvements and capital structure changes will be essential before reconsidering credit facilities.

J.GLOVER PROPERTIES LTD - Analysis Report

Company Number: 15220424

Analysis Date: 2025-07-29 13:15 UTC

Credit Opinion:
DECLINE. J.Glover Properties Ltd is a newly incorporated company (October 2023) primarily engaged in residents property management. Its inaugural set of accounts to 31 October 2024 reveal a precarious financial position with net liabilities of £4,830, driven by a large amount of current liabilities (£333,404) against negligible current assets (£1). The company has no meaningful cash reserves and a negative working capital position, which raises serious concerns about its ability to meet short-term obligations and service any credit facilities. Without trading history or profitability, the credit risk is considered high.

Financial Strength:
The balance sheet shows investment property fixed assets valued at £328,573, but this is overshadowed by current liabilities over £333k. The company’s net current assets are deeply negative (£-333,403), resulting in overall net liabilities of £4,830. Shareholders’ funds are negative, reflecting accumulated losses or initial funding shortfalls. The company is classified under the small company regime and exempt from audit, limiting the detail of financial insight. At this early stage, the financial structure lacks resilience and capital adequacy.

Cash Flow Assessment:
Cash at bank is nominal (£1), indicating no liquidity buffer. Current liabilities are significant and due within one year, implying urgent cash outflows. The negative net current assets indicate working capital deficiency, signifying that the company cannot cover its short-term debts from liquid assets. There is no evidence of operational cash inflows or profitability to support debt servicing. This liquidity shortfall severely restricts the company’s ability to withstand financial stress or economic downturns.

Monitoring Points:

• Improvement in working capital position and liquidity metrics.
• Generation of positive operating cash flow and profitability in subsequent periods.
• Reduction in current liabilities or refinancing into longer-term debt facilities.
• Any capital injection or shareholder funding to offset negative equity.
• Stability and performance of the investment property portfolio valuation.
• Director’s plans to strengthen financial controls and manage cash flow prudently.

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