JNS PROPERTY DEVELOPMENT LIMITED

Executive Summary

JNS Property Development Limited is a highly leveraged property investment company with persistent negative working capital and minimal liquid assets relative to current liabilities, indicating elevated liquidity and solvency risk. However, the company shows asset appreciation and compliance with filing obligations. Further scrutiny of property valuations and cash flow resilience is recommended to fully assess operational sustainability.

JNS PROPERTY DEVELOPMENT LIMITED - Analysis Report

Company Number: 13562303

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

1. Risk Rating: HIGH

Justification: The company exhibits significant liquidity risk evidenced by a large negative net current assets position (circa -£150k) against minimal current assets (~£3k) and substantial current liabilities (~£153k). The total liabilities, including long-term debt (~£392k), greatly exceed shareholder funds (£35k), indicating high leverage and thin equity buffer.

2. Key Concerns:

• Liquidity strain: The company holds only £1,546 in cash against current liabilities of £153,718, suggesting potential difficulty meeting short-term obligations.
• Heavy reliance on secured long-term debt: £392,103 bank loans secured against investment property create high leverage and interest obligation risks at 5.24% annual rate.
• Negative working capital: Consistent negative net current assets over 4 years indicate persistent short-term funding gaps that may threaten operational continuity if not managed.

3. Positive Indicators:

• Increasing net assets: Net assets improved from £2,675 in 2021 to £35,401 in 2024, primarily driven by revaluation reserves on investment properties.
• Investment property appreciation: The investment property portfolio increased in value by approx. £27,783 in 2024, reflecting potential asset value growth.
• Compliance and governance: The company is active with up-to-date filings for accounts and confirmation statements, indicating adherence to regulatory requirements.

4. Due Diligence Notes:

• Verify the valuation methodology and market comparables used by directors for investment property revaluations to confirm asset quality and realism.
• Assess the company's cash flow projections and debt servicing capacity given high interest costs and large loan balances with long maturities.
• Review any contingent liabilities or provisions (noted £5,279 in 2024) that could further impact solvency.
• Examine the extent of any related party transactions or director loans that might affect financial health.
• Confirm that the director's going concern assessment is supported by robust underlying assumptions given liquidity pressures.