A B M JOINTING LTD

Executive Summary

A B M Jointing Ltd demonstrates solid profitability and equity growth since incorporation in 2021, maintaining regulatory compliance and investing in fixed assets. Nevertheless, the company’s liquidity position is relatively tight, with current liabilities close to current assets and significant director loans on the balance sheet, which introduces moderate short-term financial risk. Further examination of cash flows and related party financing is recommended to fully assess operational stability and solvency.

A B M JOINTING LTD - Analysis Report

Company Number: 13786219

Analysis Date: 2025-07-20 17:00 UTC

1. Risk Rating: MEDIUM
   The company shows positive retained earnings growth and modest net current assets, indicating ongoing operations with some financial stability. However, current liabilities are close to current assets, and a significant amount is owed to directors, which presents moderate liquidity risk.

2. Key Concerns:

• Liquidity tightness: Current liabilities (£126,612) nearly match current assets (£134,176), leaving a small net working capital buffer (£7,564). This may stress short-term cash flow.
• Director loans: £29,957 owed to directors within other creditors suggests reliance on related party financing, which may mask underlying funding gaps.
• Dividend payments: Large dividends (£256,500) paid during the year relative to equity growth may reduce cash reserves and affect reinvestment capacity.

3. Positive Indicators:

• Strong profitability: Profit for the year of £272,918 significantly increased retained earnings, supporting equity growth from £20,828 to £37,246.
• Asset base growth: Tangible fixed assets increased to £29,682, reflecting investment in operational capacity.
• No overdue filings: Accounts and confirmation statements are up to date, indicating compliance with regulatory requirements.

4. Due Diligence Notes:

• Review cash flow statements (not provided) to assess operational cash generation versus dividend distributions.
• Investigate the nature and terms of director advances within other creditors for potential contingent liabilities or repayment risks.
• Analyze the company’s order book, contract pipeline, and client concentration in the electrical installation sector (SIC 43210) to evaluate operational sustainability.
• Confirm the absence of any director disqualifications or governance issues beyond the publicly filed data.