NJS HOMES LIMITED

Executive Summary

NJS Homes Limited is currently financially distressed with persistent negative net assets and significant reliance on director loans. However, the company shows some improvement in net liabilities and maintains positive short-term liquidity with current filings up to date. Further due diligence is recommended to evaluate director loan risks, cash flow stability, and operational viability before considering investment.

NJS HOMES LIMITED - Analysis Report

Company Number: 13147447

Analysis Date: 2025-07-20 17:36 UTC

1. Risk Rating: HIGH
   NJS Homes Limited exhibits several financial stress indicators, including persistent negative net assets and reliance on director loans. The net liabilities position and significant long-term creditors point to solvency concerns and potential difficulty meeting obligations without further capital infusion.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities improved from -£17,667 in 2023 to -£8,408 in 2024 but remain substantially negative, indicating the company’s liabilities exceed its assets.
• High Long-Term Debt from Director Loans: £17,765 of liabilities are owed to directors, down from £29,656, which may suggest reliance on insider funding rather than external financing. This can be a red flag for financial stability if not supported by cash flow.
• Limited Operational Activity and Staffing: No employees reported and minimal tangible fixed assets suggest a potentially thin operational base, which raises sustainability questions over the business’s ability to generate future income.

3. Positive Indicators:

• Improvement in Net Liabilities: The net liabilities have improved significantly year-on-year, from -£17,667 to -£8,408, indicating some progress in financial health.
• Positive Net Current Assets: Despite the overall negative equity, net current assets are positive (£13,262 in 2024), supported by a cash balance of £9,832, reflecting reasonable short-term liquidity.
• Up-to-date Filings: The company is current on accounts and confirmation statement filings, showing compliance with statutory requirements.

4. Due Diligence Notes:

• Examine Director Loan Terms: Clarify terms, repayment schedules, and conditions of director loans to assess risk of repayment default or capital calls.
• Cash Flow Analysis: Review detailed cash flow statements or bank statements to understand liquidity trends and operational cash generation capability.
• Business Model and Revenue Streams: Investigate the nature of the real estate letting operations, client base, and contract durations to evaluate revenue sustainability and growth prospects.
• Potential Related Party Transactions: Assess any transactions with directors or connected parties for fairness and impact on company finances.
• Future Funding Plans: Determine if there are plans for capital injections or refinancing to improve solvency.