Company Number: 13713090

Analysis Date: 2025-07-20 17:39 UTC

1. Risk Rating: HIGH
   Josey Property Ltd exhibits significant financial distress indicators, notably persistent negative net assets and large current liabilities relative to current assets, raising concerns about solvency and liquidity.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets remain negative (£-933 as of 2023), indicating liabilities exceed assets, which is a red flag for solvency.
• Severe Working Capital Deficit: Current liabilities (£124,366) far exceed current assets (£10,583), leading to negative net current assets of £-113,783, suggesting potential liquidity issues to meet short-term obligations.
• High Debt Concentration: The company carries a substantial interest-only mortgage (£298,350) secured by a fixed charge over company assets, representing a significant long-term liability relative to the company’s equity and cash position.

3. Positive Indicators:

• Stable Fixed Assets: The company holds tangible fixed assets valued at £411,200 (land and property), which could provide some security to creditors and potential collateral for refinancing.
• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, indicating regulatory compliance and governance discipline.
• Single Controlling Shareholder with Full Control: Mr. Richard John Josey owns 75-100% of shares and voting rights, providing clear decision-making authority which can facilitate rapid strategic actions if necessary.

4. Due Diligence Notes:

• Cash Flow and Debt Servicing Capability: Investigate the company’s actual cash flow generation and ability to service the mortgage interest-only loan given the liquidity shortfall.
• Valuation and Marketability of Fixed Assets: Confirm the current market value and liquidity of the property asset to assess potential for refinancing or sale if required.
• Director’s Loan Account Details: Review terms and repayment schedule of the director’s loan (£116,703) to understand any related party risks or potential for capital injection.
• Business Model Sustainability: Examine revenue streams and operational plans, as no turnover or employee data are reported; this will clarify if the company is currently trading or dormant in practical terms.