A J FLOORS LTD

Executive Summary

A J FLOORS LTD, a recently incorporated micro-entity engaged in retail floor coverings, shows a healthy initial financial position with positive net assets and regulatory compliance. However, the limited operating history and concentrated ownership warrant ongoing monitoring to ensure operational sustainability and governance robustness.

A J FLOORS LTD - Analysis Report

Company Number: 14639992

Analysis Date: 2025-07-20 15:39 UTC

1. Risk Rating: LOW
   The company, A J FLOORS LTD, exhibits a stable financial position for its first year of operation with positive net current assets and net assets, no overdue filings, and clear ownership and governance structure.

2. Key Concerns:

• Limited operating history: Incorporated in February 2023, the company has only one year of financial data, which limits trend analysis and assessment of operational stability.
• Small scale of operations: As a micro-entity with minimal fixed assets (£187) and modest current assets (£3,554), the business scale is very limited, potentially impacting resilience to market fluctuations.
• Single director and controlling shareholder: Mr. Anthony Walsh owns and controls 75-100% of shares and voting rights, which concentrates decision-making and could pose governance risks if not monitored.

3. Positive Indicators:

• Positive net current assets (£1,922) and net assets (£2,109) indicate the company currently meets its short-term liabilities and maintains a positive equity position.
• No overdue filings for accounts or confirmation statements demonstrate compliance with regulatory requirements.
• The business classification (retail sale of carpets and floor coverings) aligns with the director’s occupation (carpet fitter), suggesting relevant sector expertise.

4. Due Diligence Notes:

• Verify the sustainability of revenue streams and profitability beyond the balance sheet figures, as no profit and loss data was provided.
• Assess the company’s cash flow dynamics and customer base to confirm liquidity beyond just the balance sheet snapshot.
• Review any related party transactions or reliance on the director given his dominant ownership and operational role.
• Confirm if any contingent liabilities or off-balance-sheet risks exist that could impact solvency.
• Monitor future filings and financial performance to assess growth trajectory and operational stability.