LJ PROPERTY GROUP LTD

Executive Summary

LJ PROPERTY GROUP LTD is a micro-entity with minimal financial footprint and no tangible assets, placing it at high risk from a solvency and liquidity perspective. While regulatory compliance is maintained, the lack of operational scale and financial substance raises concerns about sustainability. Further due diligence on business activities and management capability is recommended before any investment consideration.

LJ PROPERTY GROUP LTD - Analysis Report

Company Number: SC734800

Analysis Date: 2025-07-29 20:51 UTC

1. Risk Rating: HIGH

Justification: LJ PROPERTY GROUP LTD is a micro-entity incorporated recently in 2022, with minimal turnover and zero reported assets or liabilities over three years. The financial statements show no working capital, no fixed or current assets, zero net assets, and no shareholder funds. The company generated very low turnover (£9,025 in 2024) with small profits but no cash or balance sheet strength. This suggests limited financial resources and potential inability to meet obligations or sustain operations.

2. Key Concerns:

• Lack of tangible or current assets: Zero reported assets or net working capital raises significant solvency concerns.
• Minimal turnover and no employee base: The business scale appears very small and possibly not operationally sustainable.
• Director’s status and capacity: The sole director is a student, which may impact operational stability and management capacity.

3. Positive Indicators:

• Compliance with filings: Accounts and confirmation statements are up to date, indicating good regulatory compliance.
• Reported profits: Despite low turnover, the company reported profits in the last two financial years, suggesting some operational income generation.
• No overdue liabilities or creditors: Financials show no current or long-term liabilities, reducing immediate creditor risk.

4. Due Diligence Notes:

• Verify the nature of business activities and revenue sources given the low turnover and zero asset base.
• Investigate the director’s experience and capacity to manage the company effectively.
• Check for any off-balance sheet obligations or contingent liabilities not disclosed.
• Understand the company’s cash flow position and ability to fund ongoing operations or meet commitments.
• Confirm no hidden related party transactions or support arrangements that might affect financial stability.