LJB PROPERTY LTD

Executive Summary

LJB Property Ltd is experiencing significant financial strain, evidenced by negative net assets and severe liquidity shortfalls. While compliance and asset growth are positive, the company’s ability to meet obligations and sustain operations is currently at high risk. Further investigation into asset valuation, creditor terms, and operational plans is critical to assess future viability.

LJB PROPERTY LTD - Analysis Report

Company Number: 13788108

Analysis Date: 2025-07-20 16:47 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected in its consistent negative net current assets and shareholders' funds deterioration over the last two years. The decline from positive net assets in 2022 to negative in 2023 signals increasing financial distress.

2. Key Concerns:

• Solvency Risk: Negative net assets (£-14,265 in 2023) indicate the company’s liabilities exceed its assets, raising doubts about its ability to meet long-term obligations.
• Liquidity Concerns: A large negative net current asset position (£-282,663 in 2023) suggests current liabilities substantially exceed current assets, posing immediate cash flow risks.
• Operational Stability: The company has no employees, which may indicate limited operational capacity or reliance on external contractors, potentially affecting sustainable business operations. Additionally, the fixed assets increased but have not translated into improved liquidity or solvency.

3. Positive Indicators:

• Timely Compliance: The company is current with all statutory filings, including accounts and confirmation statements, with no overdue filings noted.
• Sole Shareholder Control: Ownership and control by a single director and PSC may facilitate swift decision-making and strategic adjustments.
• Asset Base Growth: Fixed assets increased significantly from £158,000 in 2022 to £268,398 in 2023, which may reflect investment in property assets consistent with its SIC code for real estate operations.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to confirm their realizable value, given the negative net assets position.
• Review creditor composition and terms, especially current liabilities, to understand immediate cash flow pressures.
• Assess cash flow forecasts and working capital management strategies to evaluate how the company plans to address liquidity deficits.
• Clarify business model and operational structure given no employees are reported, including reliance on third parties or outsourcing.
• Examine director’s plans for financial recovery or recapitalisation to mitigate solvency risks.