R. J. PROPERTY DEVELOPMENTS LTD

Executive Summary

R. J. PROPERTY DEVELOPMENTS LTD demonstrates a growing equity base but faces liquidity challenges due to significant current liabilities exceeding current assets. The company’s creditworthiness is conditional on its ability to improve cash flow and manage working capital effectively. Close monitoring of liquidity and operational performance is recommended before advancing credit facilities.

R. J. PROPERTY DEVELOPMENTS LTD - Analysis Report

Company Number: 13135413

Analysis Date: 2025-07-20 16:29 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

18. 10. PROPERTY DEVELOPMENTS LTD shows a modest but improving financial position with positive net assets and shareholders' funds growth from £14.9k to £26.5k in the latest year. However, the company exhibits significant current liabilities (£205k) exceeding current assets (£34.7k), resulting in negative net current assets (~£171k), indicating short-term liquidity pressure. The company is micro-sized with limited operating history (incorporated 2021) and only one employee, which increases risk. Approval is conditional on monitoring liquidity improvements and confirmation of steady cash inflows from property development activities.

2. Financial Strength:
   The company’s fixed assets remain constant at £199,300, likely representing property holdings or development assets. Shareholders’ funds have increased, reflecting accumulated retained earnings or capital injections. Despite this, the balance sheet reveals a working capital deficit, with current liabilities outstripping current assets by a large margin, which raises concerns about the ability to meet short-term obligations without additional financing or asset disposal.

3. Cash Flow Assessment:
   Current assets of £34,755 primarily consist of cash and receivables but are insufficient to cover short-term liabilities of £205,341. This indicates potential cash flow constraints. The company’s ability to convert fixed assets to cash or secure external funding will be critical. The absence of detailed cash flow statements limits full assessment but the negative net current assets signal a need for close scrutiny of ongoing liquidity management.

4. Monitoring Points:

• Liquidity ratios, particularly current ratio and quick ratio, to track improvement in short-term solvency.
• Cash flow generation from property development and sales activities.
• Trends in creditor days and debtor collections to ensure working capital efficiency.
• Any changes in fixed asset valuations or disposals impacting asset base and liquidity.
• Director’s adherence to filing deadlines and operational updates for early warning signs.