JJ MALVET LTD

Executive Summary

JJ Malvet Ltd operates with significant investment property assets but faces liquidity pressures reflected in negative net current assets and a large long-term bank loan. While profitability has improved and regulatory filings are timely, the high leverage and ownership concentration warrant further scrutiny. Overall, the company presents a medium risk profile requiring detailed financial and governance due diligence.

JJ MALVET LTD - Analysis Report

Company Number: 14005989

Analysis Date: 2025-07-29 20:43 UTC

1. Risk Rating: MEDIUM

The company JJ Malvet Ltd shows a moderate risk profile primarily due to its significant current liabilities exceeding current assets, although it holds substantial investment property assets. The presence of a large long-term bank loan and negative net current assets raises concerns about liquidity and short-term solvency, but positive retained earnings and net assets indicate some financial stability.

2. Key Concerns:

• Liquidity Concerns: The company has current liabilities (£52,000) significantly exceeding current assets (£14,987), resulting in negative net current assets (-£37,013). This suggests potential short-term liquidity issues.
• High Long-Term Debt: A substantial bank loan of £868,000 falls due after more than one year, which may impose significant financial obligations and refinancing risk.
• Small Share Capital & Ownership Structure: The company has nominal share capital (£2) and complex control, with one entity (Fd Secretarial Ltd) holding majority voting rights and control, which could impact governance transparency.

3. Positive Indicators:

• Investment Property Asset: The company’s fixed asset consists mainly of investment property valued at £957,794, providing a strong asset base.
• Profitability Growth: Retained earnings increased from £19,033 to £52,779 in the year, indicating profitability and accumulation of reserves.
• Timely Compliance: All filings, including accounts and confirmation statements, are up to date with no overdue submissions, indicating good regulatory compliance.

4. Due Diligence Notes:

• Investigate the terms and servicing requirements of the £868,000 bank loan to assess repayment schedules and covenant compliance.
• Review cash flow forecasts and working capital management to evaluate how the company plans to address negative net current assets.
• Clarify the role and influence of Fd Secretarial Ltd as majority controller on company governance and decision-making.
• Confirm valuation methods and market conditions relating to the investment property to verify asset stability.