MILNER & JONES PROPERTIES LTD

Executive Summary

Milner & Jones Properties Ltd exhibits a weak but improving financial position with modest net assets and negative working capital driven by high short-term liabilities. The company’s liquidity and ability to service debts remain constrained, warranting conditional credit approval with emphasis on close monitoring of cash flow and creditor management. Ongoing improvements in equity and cash balances are positive signals but insufficient alone to fully mitigate short-term liquidity risks.

MILNER & JONES PROPERTIES LTD - Analysis Report

Company Number: 12998791

Analysis Date: 2025-07-20 14:40 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Milner & Jones Properties Ltd is an active private limited company operating in the real estate letting sector. The company shows a positive but very modest net asset position (£5,647 as of 30 November 2024) after several years of negative or minimal equity. While net assets have improved compared to previous years, current liabilities significantly exceed current assets, resulting in a negative working capital position (-£59,666). This raises concerns about short-term liquidity and the ability to meet obligations as they fall due. However, the company holds tangible fixed assets of £65,313, which may provide some collateral value. Approval is conditional on close monitoring of cash flow, liabilities management, and confirmation of ongoing cash generation or additional funding sources.

2. Financial Strength:
   The balance sheet shows fixed assets of £65,313 stable over recent years, reflecting property holdings. However, current liabilities remain consistently high (~£75k), exceeding current assets by a large margin and leading to a working capital deficit. Shareholders' funds, though improving from a negative position, remain very low at £5,647, indicating a weak equity base and limited buffer against financial stress. The company has no recorded long-term liabilities, which reduces financial risk somewhat but also indicates limited capital structure to support growth or absorb shocks.

3. Cash Flow Assessment:
   Cash at bank increased from £10,670 (2023) to £15,751 (2024), indicating some improvement in liquidity. However, the negative net current assets indicate that the company relies on short-term borrowings or creditor financing to cover operating needs. There is no indication of profitability or retained earnings apart from a small increase in profit and loss reserves (from £1,298 to £5,643). Absence of employees and minimal turnover data limits assessment of operational cash flow sufficiency. The company’s ability to service its current liabilities depends on maintaining or increasing cash inflows and managing creditor terms effectively.

4. Monitoring Points:

• Working capital trends to ensure the negative net current assets position does not deteriorate further.
• Cash flow generation from property letting activities and any new income streams.
• Timely filing of accounts and confirmation statements (currently up to date).
• Changes in creditor balances and any shifts in short-term borrowing.
• Any capital injections or shareholder funding that could strengthen equity.
• Management’s strategy to improve liquidity and profitability in near term.