Company Number: 13129484

Analysis Date: 2025-07-29 19:24 UTC

1. Credit Opinion: DECLINE
   RJO PROPERTIES LTD demonstrates a weak financial position with net liabilities reported at the 2024 year-end. The company has a very low equity base (£312 negative net assets) and a high level of long-term creditors (£124,048), indicating reliance on debt financing. Despite being current on filings, the firm’s net current liabilities and declining net assets raise concerns about its ability to meet short-term and long-term obligations. Given these factors, extending credit would be high risk without additional security or guarantees.

2. Financial Strength:
   The balance sheet shows fixed assets of £158,667, but these are offset by significant liabilities, including current liabilities of approximately £49,302 and long-term liabilities of £124,048 as of January 2024. The net asset position has deteriorated from £2,643 positive in 2023 to a negative £312 by 2024, reflecting ongoing financial strain. Shareholders’ funds are negligible, and the company operates as a micro-entity with minimal capital and retained earnings, indicating limited financial buffer.

3. Cash Flow Assessment:
   Current assets increased modestly from £1,600 to £14,371, largely cash and receivables, but current liabilities have also increased, resulting in a net current liability position of £34,931. Operating cash flow is likely constrained given the negative working capital and low cash reserves. The company’s ability to generate sufficient operating cash flow to service current liabilities and debt is questionable, particularly as it maintains only two employees and operates in real estate management and letting, which may have variable income streams.

4. Monitoring Points:

• Track changes in net current assets and net asset value to assess if the company improves liquidity and solvency.
• Monitor the aging and nature of current and long-term liabilities to understand refinancing risks.
• Review cash conversion cycle and operating cash flows regularly to evaluate repayment capacity.
• Watch for any director changes or adverse credit events that may impact management quality and governance.