SJDS DEVELOPMENTS LIMITED

Executive Summary

SJDS DEVELOPMENTS LIMITED, a newly incorporated micro-entity in real estate letting, currently shows a negative net asset position and significant liquidity shortfall. While regulatory filings are up to date and ownership is concentrated, the company faces high solvency and liquidity risks typical for an early-stage entity with limited operational scale. Further inquiry into liabilities, asset quality, and funding plans is essential to clarify financial sustainability.

SJDS DEVELOPMENTS LIMITED - Analysis Report

Company Number: 15614443

Analysis Date: 2025-07-29 12:51 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (£-17,903) and significant net current liabilities (£-74,230) within its first year of trading. This indicates solvency and liquidity risks, as current liabilities substantially exceed current assets. The absence of audit and limited disclosure under micro-entity provisions increases uncertainty.

2. Key Concerns:

• Negative equity and net liabilities suggest the company is currently insolvent on a balance sheet basis, raising concerns about its ability to meet obligations.
• Large current liabilities relative to current assets imply potential liquidity difficulties, which could impact operational continuity.
• The company is newly established (incorporated April 2024) and has only one employee (the director), limiting operational capacity and increasing execution risk.

3. Positive Indicators:

• The company has complied with filing deadlines for accounts and confirmation statements, indicating good regulatory compliance to date.
• Ownership and control are consolidated under a single director and shareholder, potentially facilitating streamlined decision-making.
• Fixed assets of £135,058 may represent tangible resources that could be leveraged or sold if necessary.

4. Due Diligence Notes:

• Review the nature and maturity profile of current and long-term liabilities to assess refinancing or repayment risk.
• Investigate the company’s business plan and cash flow projections to evaluate how it intends to address negative working capital and net liabilities.
• Confirm the valuation and liquidity of fixed assets and whether these are encumbered.
• Assess the financial support or commitments from the sole shareholder/director, including any personal guarantees or capital injections planned.