PJB PROPERTY MANAGEMENT LTD

Executive Summary

PJB Property Management Ltd is a newly formed property letting company with significant investment property assets. Despite positive net assets, the company exhibits short-term liquidity constraints and substantial long-term liabilities, warranting cautious monitoring. Timely filing compliance is a positive signal, but further financial information is needed to fully assess operational viability.

PJB PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 15167739

Analysis Date: 2025-07-20 17:59 UTC

1. Risk Rating: MEDIUM

Justification: The company is newly incorporated (September 2023) and operates in property letting, with significant investment property holdings valued at approximately £1.17 million. Despite net assets being positive at £569,415, there is a notable level of long-term creditors (£596,517) and net current liabilities of £9,256. The imbalance between current assets (£9,905) and current liabilities (£19,161), combined with considerable long-term debt, presents liquidity and solvency risks that require monitoring.

2. Key Concerns:

• Liquidity Risk: Current liabilities exceed current assets, resulting in negative net current assets, which may constrain the company’s ability to meet short-term obligations.
• High Leverage: Long-term creditors of £596,517 represent a significant financial obligation, exceeding the company’s net assets, potentially impacting solvency if cash flows do not support debt servicing.
• Lack of Profit & Loss Data: The accounts do not include an income statement, limiting insight into operational profitability and cash flow generation, critical for assessing sustainability.

3. Positive Indicators:

• Substantial Investment Property Asset: The company holds investment property valued at £1,175,188, forming the bulk of its asset base, which can generate rental income.
• Shareholders’ Funds: Positive equity of £569,415 indicates that the company’s assets exceed liabilities, supporting solvency on a balance sheet basis.
• Compliance: The company has filed accounts and confirmation statements on time with no overdue filings, suggesting good regulatory compliance.

4. Due Diligence Notes:

• Investigate the terms and maturity profile of the £596,517 long-term creditors to assess refinancing risk and debt servicing capacity.
• Obtain or review management accounts or cash flow forecasts to evaluate operational cash generation given absence of profit and loss data.
• Confirm the valuation method and market conditions underlying the investment property valuation to ensure asset reliability.
• Assess directors’ experience and plans given both directors are retired, to understand operational management and strategy.