Company Number: 13503933

Analysis Date: 2025-07-19 12:04 UTC

Financial Health Assessment for JYS PROPERTIES LTD as of 31 July 2024

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1. Financial Health Score: D

Explanation:
The company exhibits significant financial strain characterized by persistent negative net assets and net current liabilities far exceeding current assets. This indicates distress symptoms akin to a patient showing chronic symptoms without effective treatment, requiring urgent intervention to prevent further deterioration or potential insolvency.

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2. Key Vital Signs (Financial Metrics and Interpretation):

Metric	Value (2024)	Interpretation
Fixed Assets	£134,437	Company holds tangible long-term assets, likely real estate, consistent with its business activity.
Current Assets	£3,791	Very low liquid assets; "healthy cash flow" is severely lacking.
Current Liabilities	£152,730	High short-term obligations; potential "liquidity crisis" symptom.
Net Current Assets	-£148,939	Working capital deficit; company cannot cover short-term debts with available liquid assets.
Total Assets Less Current Liabilities	-£14,502	Indicates overall asset base insufficient to cover current liabilities; negative equity sign.
Net Assets (Equity)	-£14,516	Shareholders funds are negative; company is technically insolvent on a balance sheet basis.
Employee Count	0	No staff, possibly indicating minimal operational activity or outsourcing.
Audit Status	Exempt (Micro-entity regime)	Limited external scrutiny but accounts prepared under recognized standards.

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3. Diagnosis:

JYS PROPERTIES LTD is in a financially distressed state. The company’s balance sheet shows a negative net asset position worsening from -£6,899 in 2023 to -£14,516 in 2024. This is a critical symptom indicating the company’s liabilities exceed its assets, a classic sign of insolvency risk. The large working capital deficit points to a severe liquidity problem — the company does not have enough current assets (cash or equivalents) to meet its short-term debts, which may cause payment difficulties to creditors.

The fixed assets (likely property holdings given SIC codes) have slightly declined, possibly due to depreciation or asset disposals. The current liabilities have increased, worsening liquidity, indicating that the company may be relying heavily on short-term borrowing or has accrued payables. Despite being active and compliant with filing deadlines, the financial health is fragile and suggests the company is "sick" financially.

The zero employee count suggests the company is not operationally active in terms of staffing, which is common in property holding entities but may also reflect minimal business activity to generate cash flow.

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4. Recommendations (Treatment Plan):

1. Liquidity Management:

   • Immediate focus on improving cash flow. Consider renegotiating payment terms with creditors to reduce short-term liabilities pressure.
   • Explore short-term financing options if an increase in liquid assets is feasible without worsening debt burden.

2. Capital Injection:

   • Equity injection from shareholders or new investors is critical to restore positive net assets and provide working capital.
   • Given the control structure, directors and PSCs may need to consider additional capital or loans on agreed terms.

3. Asset Review:

   • Evaluate fixed assets for potential sale or refinancing to generate cash and reduce liabilities.
   • Conduct a valuation to ensure assets are not overstated and align with market reality.

4. Cost Control:

   • Maintain minimal operational expenses as currently (no employees) until financial position stabilizes.
   • Avoid incurring new debts without clear repayment plans.

5. Strategic Planning:

   • Develop a clear business plan to increase revenue streams, possibly through property letting or sales aligned with SIC activities.
   • Monitor financial metrics regularly to catch early warning signs (akin to routine health check-ups).

6. Professional Advice:

   • Engage a financial advisor or insolvency practitioner to explore restructuring options or formal insolvency procedures if improvement is not viable.

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Executive Summary

JYS PROPERTIES LTD is exhibiting financial distress with negative net assets and significant liquidity shortfalls, risking solvency and operational sustainability. Immediate measures including capital injection, liquidity improvement, and asset reviews are necessary to stabilize the company’s financial health and avoid potential insolvency. Without intervention, the company’s financial “symptoms” may worsen, threatening its viability.