MJG PROPERTY INVESTMENTS LTD

Executive Summary

MJG Property Investments Ltd maintains a solid property asset base but faces liquidity challenges evidenced by a significant working capital deficit and high leverage. The company complies with filing requirements and benefits from centralized control, though profitability issues persist. Further review of cash flows and debt obligations is recommended to assess financial sustainability.

MJG PROPERTY INVESTMENTS LTD - Analysis Report

Company Number: 12415723

Analysis Date: 2025-07-20 19:04 UTC

1. Risk Rating: MEDIUM
   The company shows a stable fixed asset base but persistent negative net current assets and high current liabilities suggest liquidity pressures. Positive net asset value and no overdue filings mitigate immediate solvency concerns but warrants close monitoring.

2. Key Concerns:

• Liquidity Shortfall: Current liabilities (£90k) significantly exceed current assets (£921), resulting in a working capital deficit (~£-89.5k) which could impair the company’s ability to meet short-term obligations.
• High Long-Term Debt: Bank loans of £237,510 represent a substantial leverage level relative to shareholders' funds (£17,943), increasing financial risk.
• Negative Profit and Loss Reserve: The accumulated losses on the profit and loss account (-£9,486) indicate ongoing or prior profitability challenges.

3. Positive Indicators:

• Stable Fixed Assets: Tangible fixed assets remain consistently valued at ~£350k, indicating a solid asset base likely tied to property investments.
• No Filing Delinquencies: All accounts and confirmation statements are up to date, reflecting compliance with statutory requirements and good governance.
• Single Controlling Shareholder: 100% control by a single director/shareholder may facilitate swift decision-making and strategic consistency.

4. Due Diligence Notes:

• Review detailed cash flow statements to assess operational cash generation and timing of creditor payments.
• Investigate the terms and repayment schedule of the bank loans and director’s loan account to understand refinancing risks.
• Verify status and valuation methodology of the revaluation reserve (£27,428) and tangible assets for impairment risks.
• Examine the company’s business plan and revenue streams to evaluate prospects for returning to profitability and improving liquidity.
• Confirm no related party transactions or contingent liabilities not disclosed in accounts.