3J SYSTEMS & SERVICES LIMITED

Executive Summary

3J Systems & Services Limited shows a clear turnaround from initial negative net assets to a solid equity position with strong working capital. The company’s micro-entity scale and single-employee operation limit complexity, and financials indicate good short-term liquidity and creditworthiness. Credit approval is recommended with standard monitoring of accruals and cash flow trends.

3J SYSTEMS & SERVICES LIMITED - Analysis Report

Company Number: 13636819

Analysis Date: 2025-07-29 13:42 UTC

1. Credit Opinion: APPROVE. 3J Systems & Services Limited demonstrates improving financial stability and working capital position, indicating a growing ability to meet short-term obligations. The company operates in the electrical installation sector, a service-oriented industry with steady demand. Despite being a micro-entity with limited scale and only one employee, the recent positive net assets and increased current assets support a low-risk credit profile for modest facilities. The absence of overdue filings and no signs of distress further support credit approval.

2. Financial Strength: The company’s net assets improved significantly from a negative £4,421 in the first year (2021) to a positive £24,961 in 2024. This recovery reflects retained earnings or capital injections. Fixed assets are minimal (£195 in 2024), typical for a service business relying on low capital investment. The balance sheet shows a strong liquidity buffer with current assets of £82,817 against £18,051 current liabilities in 2024, yielding a healthy net current assets (working capital) position of £64,766. The accruals and deferred income of £40,000 should be monitored but do not currently impair solvency.

3. Cash Flow Assessment: The liquidity position is robust with current assets exceeding current liabilities by a large margin, indicating good short-term debt servicing capability. The increase in current assets (from £19,915 in 2023 to £82,817 in 2024) suggests improved cash or receivables levels, enhancing cash flow strength. However, detailed cash flow statements are not provided, so ongoing monitoring of cash conversion cycles and receivables turnover is recommended to confirm cash flow sustainability.

4. Monitoring Points:

• Watch the accruals and deferred income balance to ensure it does not obscure underlying liabilities.
• Monitor continued growth in net current assets and net profit retention to maintain balance sheet strength.
• Keep track of any changes in trade debtor days or payment patterns that could affect liquidity.
• Review annual filings to confirm no deterioration in financial metrics or delays in statutory compliance.