JLM PROPERTY MANAGEMENT LTD

Executive Summary

JLM Property Management Ltd demonstrates improving profitability and strengthening net assets since incorporation. The company shows adequate liquidity and manageable liabilities but operates with modest equity and tight working capital. Credit approval is recommended with ongoing monitoring of cash flow, debtor collection, and directors’ funding to ensure continued financial stability.

JLM PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 13159755

Analysis Date: 2025-07-29 20:50 UTC

1. Credit Opinion: APPROVE with Conditions
   JLM Property Management Ltd is a small private limited company active since 2021, engaged in property management on a fee or contract basis (SIC 68320). The latest accounts to 31 January 2025 show steady improvement in net assets and profitability. The company has grown net assets from £147 in 2021 to £7,140 in 2025 and generated a profit of £5,647 in the latest year. The directors have maintained consistent control and there is no record of financial distress or overdue filings. However, the company operates with modest working capital and limited equity, indicating a need for ongoing monitoring of cash flow and creditor management. Credit approval is recommended subject to periodic review of updated financials and confirmation of continued trading performance.

2. Financial Strength
   The balance sheet shows modest but improving financial strength. Net current assets increased significantly to £7,140 in 2025 from £1,493 in 2024, driven by increased debtors (£7,473) and stable cash balances (£11,395). Current liabilities reduced slightly to £11,728. Shareholders’ funds increased to £7,140, reflecting retained earnings growth. Share capital remains nominal at £150. The company carries no fixed assets, indicating a low asset base but also low capital expenditure commitments. Overall, the company’s financial position is stable for its size, with improving equity and manageable liabilities.

3. Cash Flow Assessment
   Cash at bank decreased from £14,515 in 2024 to £11,395 in 2025, despite increased profitability. Debtors have increased, suggesting some delay in cash collection, but the company maintains positive net current assets. Creditors have remained stable, with directors’ current accounts consistently high (~£9,600), which may indicate reliance on director funding or intercompany balances. Liquidity is adequate but tight, so cash flow management must remain a focus to ensure timely payment of liabilities and avoid liquidity strain.

4. Monitoring Points

• Continued profitability and growth in retained earnings to strengthen equity base.
• Debtor aging and collection efficiency to prevent cash flow issues.
• Directors’ current accounts balance and any changes in funding patterns.
• Timely filing of accounts and confirmation statements to maintain compliance.
• Market conditions in property management sector and contract renewal status.