JOYHOME PROPERTY MANAGEMENT LIMITED

Executive Summary

Joyhome Property Management Limited maintains compliance with regulatory filings and shows positive net current assets, supporting ongoing operations. However, a notable increase in current liabilities and a decline in net assets warrant further analysis to assess liquidity and solvency risks. Overall, the company presents a medium risk profile requiring closer examination of its short-term financial obligations and operational sustainability.

JOYHOME PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 13111204

Analysis Date: 2025-07-20 13:11 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net assets and has filed accounts and confirmation statements on time, which supports operational continuity. However, the decline in net assets from £15,836 in 2023 to £10,443 in 2024, alongside a substantial increase in current liabilities and a reduction in cash balances, raises moderate solvency and liquidity concerns.

2. Key Concerns:

• Significant increase in current liabilities from £1,515 to £24,664 within one year, which may pressure short-term liquidity.
• Decline in net assets and shareholders' funds by approximately 34%, indicating potential erosion of financial stability.
• Director loans (debts owed by the company to directors) were fully repaid in 2024; while this eliminates an asset, it may also reduce available working capital.

3. Positive Indicators:

• The company remains active and compliant with all filing deadlines, indicating good governance and regulatory compliance.
• Positive net current assets (£11,091) suggest the company can cover short-term liabilities despite their increase.
• The company operates within a defined niche (residents property management and real estate management), potentially providing stable income streams.

4. Due Diligence Notes:

• Investigate the nature and cause of the sharp increase in current liabilities to assess whether it is due to temporary operational expenses, delayed payments, or other financial stress.
• Review cash flow statements and bank reconciliations to understand liquidity trends and verify if working capital is sufficient to meet ongoing obligations.
• Examine business operations and revenue generation to confirm sustainability, especially given the small employee base and asset-light balance sheet.
• Confirm that director loans and repayments were conducted on commercial terms and understand the impact on company finances.