SJP DEVELOPMENTS LTD

Executive Summary

SJP Developments Ltd is financially fragile with a negative net asset position and significant working capital deficits, raising doubts about its ability to meet financial obligations. The company relies heavily on director loans and lacks operational cash flow, leading to a credit recommendation to decline new credit facilities at this time. Continuous monitoring of liquidity and equity improvements is necessary before reconsidering credit exposure.

SJP DEVELOPMENTS LTD - Analysis Report

Company Number: 13830860

Analysis Date: 2025-07-29 13:16 UTC

1. Credit Opinion: DECLINE
   SJP Developments Ltd demonstrates significant financial weakness as of its latest accounts dated 30 March 2024. The company has persistent negative net current assets (liabilities exceed current assets by approximately £76k), a negative net asset position (£927 deficit), and accumulated losses reflected in retained earnings of £1,027. The high level of current liabilities (£82k) relative to minimal cash reserves (£6k) suggests poor liquidity and insufficient working capital to meet short-term obligations. Given these factors and the absence of trading revenues or employees, the company’s ability to service debt or honor commercial agreements is doubtful without significant external financial support.

2. Financial Strength:
   The balance sheet indicates the company is undercapitalized with negative equity and net liabilities. Fixed assets consist entirely of an investment valued at £75,000, but this does not translate into operational cash flow or income. The company’s continued accumulation of losses and negative retained earnings underscore an erosion of shareholder funds. The director’s current account creditor balance (£43,558) implies reliance on director loans to fund operations, which is not a sustainable financing structure for third-party creditors.

3. Cash Flow Assessment:
   Liquidity is constrained with only £6,092 in cash against current liabilities of £82,019, resulting in a working capital deficit of £75,927. This shortfall highlights an inability to cover immediate liabilities from liquid assets. The absence of employees and no reported income figures suggest limited operational cash inflow, increasing risk of default on any credit extended.

4. Monitoring Points:

• Monitor future filings for improvement in net current assets and shareholder funds.
• Watch director loan balances and creditor composition to assess financial support sustainability.
• Evaluate cash flow statements when available to confirm liquidity trends.
• Observe any changes in business activity or operational income generation that could improve financial resilience.