JLW PROPS LIMITED

Executive Summary

JLW PROPS LIMITED is currently solvent but exhibiting signs of financial fragility with very limited working capital and a dependence on director loans. While the business maintains positive net assets, its narrow liquidity margin signals vulnerability to cash flow shocks. Strengthening working capital, diversifying funding sources, and improving operational capacity are critical steps to ensure sustainable financial health and growth.

JLW PROPS LIMITED - Analysis Report

Company Number: 13144224

Analysis Date: 2025-07-20 16:37 UTC

Financial Health Assessment for JLW PROPS LIMITED (as of 31 January 2024)

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1. Financial Health Score: C

Explanation:
JLW PROPS LIMITED exhibits signs of financial viability but with notable fragility. The company is maintaining positive net current assets, yet the margin is very slim and declining over recent years. This suggests a "symptom of distress" in working capital management, signaling a need for caution and active financial oversight.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	18,561	Represents cash, receivables, or short-term assets — increased, which is positive.
Current Liabilities	18,184	Amounts payable within one year — also increased, nearly matching current assets.
Net Current Assets (Working Capital)	377	Positive but very low, indicating just enough short-term resources to cover immediate debts.
Shareholders’ Funds	377	Equity capital is minimal, showing little buffer against losses.
Share Capital	2	Nominal share capital, typical for micro-entities but reflects very limited initial investment.
Director’s Loan Account	17,634	Significant amounts owed by the company to a director, indicating reliance on director funding.

Trend Analysis:

• Net current assets have fallen sharply from £3,442 in 2021 to just £377 in 2024.
• Current liabilities have increased substantially relative to current assets, suggesting increasing short-term financial pressure.
• Shareholders’ funds decreased similarly, indicating that retained earnings or reserves are nearly depleted.
• No employees are recorded, which reduces fixed cost pressures but may limit operational capacity.

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3. Diagnosis

JLW PROPS LIMITED is showing "symptoms of financial strain" commonly seen in small start-ups or micro-entities in early operational phases. The company is solvent but barely maintaining a positive working capital position. The increase in director loans reflects reliance on internal funding sources rather than external borrowing or equity injection, which can be risky if not managed carefully.

The "pulse" of the business is weak:

• The minimal working capital buffer means any unexpected cash flow disruption could cause liquidity issues.
• The lack of employees suggests a lean operation but possibly limited growth capacity.
• The company’s financial statements are unaudited, typical for micro companies, but this means less external validation of financial health.

Overall, the company is functioning but vulnerable. Without improvement, it risks "financial fatigue," which could compromise its ability to invest, pay liabilities, or sustain operations.

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4. Recommendations

To improve financial wellness and strengthen the company’s financial "heartbeat," the following actions are advised:

1. Strengthen Working Capital:

   • Improve cash flow management via tighter credit control or faster receivables collection.
   • Negotiate longer payment terms with suppliers to ease current liabilities pressure.

2. Reduce Reliance on Director Loans:

   • Consider formalizing any director loans with clear terms or convert some to equity to solidify the balance sheet.
   • Explore alternative funding sources such as small business loans or grants to diversify financing.

3. Build Equity Base:

   • If feasible, raise additional capital through new share issuance or bring in new investors to increase shareholders’ funds and provide a cushion against losses.

4. Operational Efficiency:

   • Although no employees are currently listed, evaluate if investing in key personnel could improve revenue generation and operational capacity.

5. Regular Financial Monitoring:

   • Establish monthly financial reviews to detect early signs of liquidity stress or declining profitability, ensuring timely management intervention.

6. Plan for Growth and Risk Mitigation:

   • Develop a business plan with cash flow forecasts and contingency plans to prepare for market uncertainties.

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