JH&R PROPERTIES LTD

Executive Summary

JH&R PROPERTIES LTD shows significant financial strain with negative net assets and reliance on director funding, posing a high risk to solvency and liquidity. While regulatory filings are current and governance appears transparent, the lack of operational activity raises concerns about the company’s sustainability. Further investigation into the director loan and business plans is recommended to clarify future viability.

JH&R PROPERTIES LTD - Analysis Report

Company Number: 14074658

Analysis Date: 2025-07-29 17:38 UTC

1. Risk Rating: HIGH
   JH&R PROPERTIES LTD presents a high risk profile primarily due to its current financial position showing negative net assets and net current liabilities, indicating solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Assets and Working Capital: As of 30 April 2024, the company reported net current liabilities of £393 and net assets of negative £393, signifying it owes more than it owns in liquid and overall assets.
• Director Loan Liability: The company owes a director £900, which may indicate reliance on director funding rather than external financing or operational cash flow. This related party loan increases financial risk if not repaid timely.
• Dormant Status with Limited Operations: The company is categorized as dormant for accounting purposes despite being active since 2022. This suggests minimal trading activity or revenue generation, raising concerns about operational sustainability.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date with accounts and confirmation statement filings, indicating adherence to regulatory requirements and governance standards.
• Clear Ownership and Management Structure: The presence of identified directors and persons with significant control (three individuals owning between 25-50% shares each) provides transparency in control and accountability.
• No Signs of Insolvency Proceedings: The company is not in liquidation, administration, or receivership, which suggests it has not yet encountered formal financial distress.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan (£900) to understand repayment plans and impact on cash flow.
• Confirm the company's business activity level and future plans given its dormant accounting status but active registration.
• Review any operational income or contracts not reflected in current financials to assess potential for improving liquidity and solvency.
• Assess the reason for the negative retained earnings and any prior losses impacting shareholders’ funds.
• Monitor changes in director appointments and PSC to detect any governance or control issues.