JONATHAN MICHAELS PROPERTY SERVICES LIMITED

Executive Summary

Jonathan Michaels Property Services Limited’s financial position has weakened considerably in the latest year, with net current liabilities and near-zero net assets indicating liquidity stress and balance sheet erosion. While the company remains active with no filing issues, credit extension should be conditional on improved cash flow management and regular monitoring due to operational risks. Careful oversight of cash flow and creditor payments is essential to mitigate default risk.

JONATHAN MICHAELS PROPERTY SERVICES LIMITED - Analysis Report

Company Number: 13296507

Analysis Date: 2025-07-19 12:42 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

Jonathan Michaels Property Services Limited is an active private limited company in the building completion and development sector, incorporated in 2021. The latest accounts show a significant deterioration in liquidity and working capital, with net current liabilities of £3,409 as of March 2024, compared to net current assets of £2,677 in the prior year. Net assets also declined sharply from £4,777 to £43, indicating a near erosion of equity. The company’s cash position has fallen from £15,024 to £9,816, further stressing short-term financial stability.

Given these signs of financial stress, the company currently exhibits a weak balance sheet and strained liquidity, raising concerns about its ability to meet short-term obligations and service new credit facilities without additional support or improvements. However, the company remains operational, has no overdue filings, and the director team includes an experienced builder and a controlling shareholder, suggesting some level of management continuity.

A credit facility may be considered on a conditional basis with strict monitoring and limits, preferably secured or supported by additional collateral or guarantees. The company’s recent change in director and significant drop in working capital necessitate caution, and any credit extension should be tied to clear turnaround plans or improving cash flow evidence.

2. Financial Strength:

• Fixed assets are minimal and stable around £3,452.
• Current assets dropped from £25,459 in 2023 to £11,892 in 2024, mainly driven by reduction in trade debtors from £10,435 to £2,076.
• Cash decreased by approximately £5,200, a negative sign for liquidity.
• Current liabilities reduced slightly from £22,782 to £15,301 but still exceed current assets, causing net current liabilities.
• Net assets have almost fully eroded to £43 from £4,777 last year.
• Share capital is nominal (£1).
• The company remains very small in scale with only 2 employees.

3. Cash Flow Assessment:

• Cash reserves have declined significantly, limiting the company’s liquidity buffer.
• Negative net working capital raises concerns about the company’s ability to fund day-to-day operations without additional financing.
• Trade payables remain substantial at over £15,000, potentially indicating payment delays or stretched supplier credit.
• The company’s ability to generate positive operating cash flow is unclear due to absence of profit & loss data but net asset erosion suggests operational losses or high costs.
• Limited cash flow flexibility and potential reliance on director funding or external support.

4. Monitoring Points:

• Monthly cash flow and working capital trends to detect further deterioration.
• Timely settlement of trade creditors and tax liabilities to avoid enforcement or penalties.
• Management actions to improve debtor collections and control overheads.
• Any changes in director or ownership that might impact governance.
• Filing of next accounts and confirmation statements on time.
• Evidence of new contracts or revenue growth to restore financial health.