JLN PROPERTY HOLDINGS LTD

Executive Summary

JLN Property Holdings Ltd shows significant liquidity and solvency concerns, with current liabilities greatly exceeding current assets and minimal cash reserves. While the company possesses tangible fixed assets and maintains compliance with statutory filings, the absence of revenue data and ongoing negative working capital raise questions about operational sustainability. Further investigation into asset liquidity, cash flows, and creditor terms is essential to fully assess risk.

JLN PROPERTY HOLDINGS LTD - Analysis Report

Company Number: NI678083

Analysis Date: 2025-07-29 19:50 UTC

1. Risk Rating: HIGH
   The company exhibits a high solvency risk due to significant current liabilities vastly exceeding current assets, resulting in a large negative working capital. There is a material imbalance between liabilities (£318k+) and assets (~£311k fixed assets plus minimal current assets), indicating potential difficulty in meeting short-term obligations.

2. Key Concerns:

• Severe Negative Net Current Assets: The company’s net current liabilities are over £310k, which has deteriorated slightly from previous years, indicating ongoing liquidity pressure.
• Minimal Cash Reserves: Cash and liquid assets are very low (~£7k), insufficient to cover short-term creditors of over £318k.
• No Operating Income Data Provided: Absence of turnover or profit information limits assessment of operational sustainability; the company relies heavily on fixed assets whose liquidity is uncertain.

3. Positive Indicators:

• Substantial Fixed Assets: The company holds tangible fixed assets valued at £311k consistently over two years, which may provide collateral value or potential for sale to raise funds.
• No Overdue Filings: All statutory accounts and confirmation statements are filed on time, indicating compliance with filing requirements and no regulatory red flags.
• Stable Shareholder Structure: Directors have been consistent since incorporation, with no reported disqualifications or changes, suggesting governance stability.

4. Due Diligence Notes:

• Nature and Liquidity of Fixed Assets: Investigate what comprises the £311k in tangible assets and their realizable value under distress conditions.
• Cash Flow and Revenue Generation: Obtain income statements or management accounts to understand if the company generates sufficient cash flow to service liabilities.
• Debt Structure and Creditor Details: Clarify the nature of current liabilities (£318k), maturity profiles, and creditor relationships to assess refinancing or repayment risks.
• Related Party Transactions: Given directors' addresses coincide with company address, review any related party loans or transactions that might impact financial position.