JLA PROPERTIES LIMITED

Executive Summary

JLA Properties Limited exhibits significant financial distress with negative net assets and poor liquidity, raising concerns about its ability to meet debt obligations. The company’s balance sheet deterioration and high creditor levels suggest limited resilience and elevated credit risk. Extension of credit is not recommended without substantial improvement in financial stability and cash flow generation.

JLA PROPERTIES LIMITED - Analysis Report

Company Number: 13752574

Analysis Date: 2025-07-29 20:53 UTC

1. Credit Opinion: DECLINE
   JLA Properties Limited demonstrates weak financial health with persistent and increasing net liabilities. The company’s net assets have deteriorated from £119,287 positive in 2022 to a negative £76,896 as of November 2023, indicating an erosion of equity. The presence of significant long-term creditors (£168,000 due after one year) coupled with insufficient current assets (£2,960) against current liabilities (£81,856) highlights liquidity constraints and potential difficulty servicing debt obligations. The company operates with no employees and limited turnover disclosure, indicating limited operational activity and cash inflows. Given these factors, the risk of default or financial distress is elevated, and credit extension is not advisable at this stage.

2. Financial Strength:
   The balance sheet is weak, showing a significant deterioration over one year. Fixed assets stand at £170,000, representing investment properties at market value, but these have been financed substantially by external creditors rather than equity. The company’s net current assets have swung from positive £118,928 in 2022 to negative £78,896 in 2023, reflecting a worsening working capital position. The substantial creditor balances, especially long-term liabilities of £168,000, reduce financial flexibility. Negative shareholders' funds indicate that liabilities exceed assets, undermining solvency and the company’s buffer against adverse conditions.

3. Cash Flow Assessment:
   Current assets are minimal and predominantly non-cash in nature, with no indication of cash or equivalents sufficient to cover short-term obligations. The dramatic increase in current liabilities relative to current assets suggests the company faces liquidity strain. The absence of employees and unclear revenue generation raises concerns about ongoing cash inflows necessary to pay creditors and service debts. No audit or detailed cash flow statement is provided, limiting visibility into actual cash generation. Overall, the company appears to have inadequate liquidity and working capital to meet immediate financial commitments.

4. Monitoring Points:

• Watch for improvements in net current assets and reduction in short-term liabilities.
• Monitor changes in long-term creditor balances and any restructuring efforts.
• Track operating activity or turnover growth to assess cash flow improvement.
• Observe director actions regarding capital injections or asset disposals to improve equity.
• Review future filed accounts for signs of stabilization or further deterioration in net assets and liquidity.