RJA PROPERTY DEVELOPMENTS LTD

Executive Summary

RJA Property Developments Ltd is currently facing high solvency and liquidity risk due to negative net assets and a significant working capital shortfall. Despite stable fixed assets and good compliance with filing obligations, the company’s reliance on a major debtor loan and large short-term liabilities present key concerns for investors. Further due diligence on related party exposures and creditor arrangements is essential to assess the company’s financial stability and operational sustainability.

RJA PROPERTY DEVELOPMENTS LTD - Analysis Report

Company Number: 13679910

Analysis Date: 2025-07-29 19:25 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position as of the latest financial year, with net liabilities of £5,211. The net current liabilities exceed current assets by a substantial margin (£216,858), indicating significant short-term liquidity issues. The persistent negative working capital and erosion of shareholders’ funds over the most recent year elevate solvency and liquidity risk concerns.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The transition from positive net assets (£4,701 in 2023) to a net liability position in 2024 signals deteriorating financial health and potential insolvency risk.
• High Current Liabilities Relative to Current Assets: Current liabilities (£267,724) are over five times the value of current assets (£50,866), suggesting inability to meet short-term obligations without additional financing or asset disposals.
• Concentration of Debtors and Related Party Exposure: A loan of £49,089 to Silver Birch Property Ltd constitutes the majority of current assets, exposing the company to counterparty risk and potential illiquidity if the debtor fails to repay timely.

3. Positive Indicators:

• Stable Fixed Asset Base: Tangible fixed assets remain relatively stable (£211,647), reflecting ownership of property assets that may serve as collateral or provide long-term value.
• No Overdue Filings: The company is up to date with both accounts and confirmation statement filings, indicating compliance with statutory obligations and reduced regulatory risk.
• Experienced Directors: Both directors have been in place since incorporation, which may contribute to operational continuity.

4. Due Diligence Notes:

• Investigate the nature and collectability of the loan to Silver Birch Property Ltd, including repayment terms, creditworthiness, and any security held.
• Review the composition and terms of the substantial current liabilities, especially the “Other loans” (£173,495) and intercompany balances (£82,880), to assess refinancing needs and creditor relationships.
• Obtain insight into cash flow forecasts and funding arrangements to understand how the company plans to address its working capital deficit.
• Confirm absence of director disqualifications or regulatory sanctions not evident from the data provided.
• Evaluate market conditions and the company’s business model in the property development sector to assess operational sustainability.