JYR PROPERTY LETS LIMITED

Executive Summary

JYR Property Lets Limited is currently in a fragile financial state with negative net assets and working capital deficiencies, indicating liquidity strain and a heavy debt burden. The company’s asset base is strong but illiquid, requiring strategic management to improve cash flow and reduce liabilities. Prompt action on debt restructuring and operational clarity is essential to improve its financial prognosis.

JYR PROPERTY LETS LIMITED - Analysis Report

Company Number: 13268612

Analysis Date: 2025-07-20 12:49 UTC

Financial Health Assessment – JYR PROPERTY LETS LIMITED (Year ended 31 March 2024)

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1. Financial Health Score: D

Explanation:
JYR Property Lets Limited shows persistent negative net assets and net current liabilities, indicating financial distress symptoms. While the company holds valuable fixed assets (property), its liquidity position is weak, with current liabilities far exceeding current assets. This score reflects a fragile financial condition requiring urgent attention to improve cash flow and reduce liabilities.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Cash at Bank	£2,283	Very low cash reserves; limited immediate liquidity to cover short-term obligations.
Current Liabilities	£69,692	High short-term debts due within a year, mostly director loans and accruals.
Net Current Assets (Working Capital)	£-67,409	Negative working capital; suggests inability to cover short-term debts with current assets.
Fixed Assets (Tangible)	£245,000	Strong asset base in property, but these are illiquid and cannot be quickly converted to cash.
Long-Term Liabilities	£183,925	Significant bank loans and some director loans due after one year, representing ongoing debt burden.
Net Assets (Equity)	£-6,334	Negative shareholders’ funds; liabilities exceed total assets indicating insolvency on balance sheet.
Share Capital	£100	Minimal equity base; company largely financed through debt.

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3. Diagnosis: Financial Symptoms and Underlying Health

• Symptom of Liquidity Strain: The company’s current assets are far outweighed by current liabilities, reflected in negative net current assets (working capital). This suggests "cash flow congestion," akin to a patient with poor blood circulation where immediate needs are not met by available resources.

• Chronic Debt Burden: The sizeable long-term bank loans (£183,925) combined with director loans indicate ongoing reliance on external financing. This resembles a patient with chronic illness requiring continuous medication — the company is dependent on debt rather than generating sufficient internal cash flows.

• Asset Illiquidity: Tangible assets are mainly property, valued at £245,000, but these are not readily convertible to cash in emergencies. This is like having valuable but fixed organs that cannot be mobilised quickly to address acute health crises.

• Negative Equity (Net Assets): The company has negative net assets (£-6,334), which is a critical sign of financial distress or insolvency on paper. This shows accumulated losses or over-leverage and may reduce stakeholder confidence.

• No Employees / Activity: The company reports zero employees, indicating minimal operational activity or reliance on directors. This could reflect a strategic holding structure rather than active trading, but also raises concerns about revenue generation.

• Stable but Concerning Trend: Compared to prior years, the company’s negative net assets have slightly improved from £-10,159 (2023) to £-6,334 (2024), indicating marginal recovery but still well within unhealthy territory.

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4. Recommendations: Prescriptions for Financial Wellness

1. Improve Liquidity and Cash Flow Management:

   • Prioritize building cash reserves to meet short-term liabilities. Consider renegotiating payment terms or arranging overdrafts or short-term credit lines.
   • Explore opportunities to accelerate debtor payments or reduce accruals.

2. Debt Restructuring:

   • Engage with lenders (bank and directors) to restructure debt to more manageable terms, possibly extending maturities or reducing interest rates.
   • Evaluate potential for equity injection to reduce leverage and improve net asset position.

3. Asset Utilization Strategy:

   • Assess whether any fixed assets (property) can be monetized or leveraged (e.g., sale and leaseback) to improve liquidity without losing operational capacity.
   • Consider active management or development of real estate assets to generate rental income or capital gains.

4. Operational Review:

   • Clarify business model and revenue streams. With no employees and minimal cash, sustainable income generation is critical.
   • If the company is a property holding entity, ensure rental incomes cover debt servicing and operational costs.

5. Regular Financial Monitoring:

   • Implement tighter financial controls, with monthly cash flow forecasts and variance analysis.
   • Seek professional advice on insolvency risks and strategic planning.

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Medical Analogy Summary

JYR Property Lets Limited shows symptoms of financial distress—not unlike a patient with poor circulation and a heavy disease burden. The company’s "vital signs" reveal weak liquidity ("low blood pressure") and chronic debt ("long-term illness"). Without intervention, the prognosis remains guarded. However, signs of slight improvement suggest that with disciplined treatment—better cash flow, debt management, and asset utilisation—the company could regain financial health.

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