LJS PROPERTY MAINTENANCE LIMITED

Executive Summary

LJS Property Maintenance Limited, a recently established property maintenance business, currently faces liquidity challenges and negative net assets typical of a start-up in its first year. Immediate actions to improve cash flow and capital structure are essential to avoid financial distress and build a foundation for sustainable growth. With focused management of working capital and operational efficiency, the company can improve its financial health over the coming periods.

LJS PROPERTY MAINTENANCE LIMITED - Analysis Report

Company Number: 15139102

Analysis Date: 2025-07-29 16:15 UTC

Financial Health Assessment: LJS Property Maintenance Limited

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1. Financial Health Score: Grade D

Explanation:
LJS Property Maintenance Limited exhibits significant early-stage financial strain, with net current liabilities far exceeding current assets and negative net assets. While typical for a newly incorporated company, these "symptoms" indicate cash flow challenges and a working capital deficit that need urgent attention to avoid financial distress. The score reflects a company at risk but with potential for recovery if corrective measures are implemented swiftly.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	57,884	Healthy investment in long-term assets, mainly plant, machinery, and vehicles.
Current Assets	11,892	Limited short-term resources including cash and debtors.
Cash at Bank	2,663	Low cash buffer indicating tight liquidity.
Current Liabilities	71,492	High short-term obligations, a red flag indicating urgent payments due soon.
Net Current Assets (Working Capital)	-59,600	Negative working capital, symptomatic of liquidity stress and potential operational disruption.
Net Assets / Shareholders’ Funds	-1,716	Negative equity signals the company is currently “underwater” and may struggle to withstand losses.
Share Capital	100	Minimal initial investment, typical for a start-up but insufficient to cover losses.
Number of Employees	4	Small team, manageable overhead but limited capacity for rapid growth.
Turnover & Profit/Loss	Not disclosed	Unable to assess profitability directly; however, negative equity suggests accumulated losses.

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3. Diagnosis

LJS Property Maintenance Limited is in its infancy, incorporated less than a year ago, with a financial structure showing early distress signals:

• Liquidity Crisis: The company’s current liabilities are approximately six times its current assets, creating a severe liquidity crunch. This “symptom” means the company may struggle to meet short-term creditor demands without additional capital or improving cash flow.

• Negative Working Capital: The large negative net current assets signify that day-to-day operations are likely funded by creditors or overdrafts, a risky position that can limit operational flexibility and supplier trust.

• Negative Net Assets: The company’s accumulated losses exceed its minimal share capital, indicating that the business has been operating at a loss or has incurred start-up costs not yet offset by income.

• Asset Base: The presence of tangible fixed assets (plant, machinery, motor vehicles) is a positive “vital sign,” showing investment in operational capability. However, depreciation and asset utilization must be monitored to avoid further impairment.

• Early Stage Nature: Given incorporation in September 2023, these financial "symptoms" are not unusual for a start-up in the property maintenance and cleaning services sector, which may have upfront investment and delayed revenue cycles.

Overall, the company is currently in a fragile financial state, akin to a patient showing signs of respiratory distress — urgent intervention required to stabilize.

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4. Recommendations

1. Improve Liquidity:

   • Seek additional working capital injections from shareholders or external lenders to strengthen cash reserves.
   • Negotiate extended payment terms with suppliers and creditors to ease short-term cash pressure.

2. Enhance Cash Flow Management:

   • Accelerate debtor collections and rigorously manage credit control to convert sales into cash faster.
   • Monitor and control overhead costs tightly to prevent cash burn.

3. Profitability Focus:

   • Review pricing, contracts, and operational efficiency to ensure gross margin improvement.
   • Minimize non-essential expenditures until a sustainable profit margin is achieved.

4. Financial Monitoring:

   • Implement regular financial “health checks” (monthly cash flow forecasts and management accounts) to detect emerging issues early.
   • Consider professional advice for restructuring if cash flow does not improve.

5. Strategic Planning:

   • Explore growth opportunities that can bring in steady revenue streams.
   • Avoid over-investing in fixed assets until operational cash flow stabilizes.

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