JS AYR LIMITED

Executive Summary

JS Ayr Limited demonstrates high financial risk characterized by persistent negative net assets and substantial liquidity deficits. While it maintains compliance with filing obligations and holds significant fixed assets, the heavy reliance on director funding and inability to cover short-term liabilities raise concerns about ongoing operational sustainability. Further examination of asset valuations, cash flows, and funding arrangements is recommended.

JS AYR LIMITED - Analysis Report

Company Number: SC683110

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities exceeding £636,000 and net liabilities overall. The consistent negative net assets and shareholders' deficit indicate financial distress.

2. Key Concerns:

• Severe liquidity shortfall: Current liabilities (£674,993) far exceed current assets (£38,696), indicating inability to meet short-term obligations.
• Negative net assets and shareholders' funds: Net liabilities of £7,602 as of 2023, worsening from previous years, suggest erosion of capital base and solvency risk.
• High director loan balance: The company owes a substantial amount (£407,602) to the director, reflecting dependence on director funding which may not be sustainable or formalized.

3. Positive Indicators:

• Stable fixed asset base: The company holds fixed assets valued at £628,695, which may provide some security or recovery value.
• No overdue filings: Accounts and confirmation statements are up to date, suggesting compliance with statutory reporting requirements.
• Active status with no insolvency proceedings: The company is active and not currently in liquidation or administration.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan and whether it is repayable or convertible to equity.
• Clarify the company's revenue generation and operational cash flows, as turnover and profit/loss data are not presented.
• Assess the recoverability and valuation basis of fixed assets and loans to group undertakings (£628,695), which represent significant asset value.
• Understand the company's business model and sustainability given ongoing losses and significant liabilities.
• Review any contingent liabilities or off-balance-sheet obligations not disclosed.