C.J.M. RENOVATIONS LIMITED

Executive Summary

C.J.M. Renovations Limited is an early-stage construction installation company exhibiting high financial risk primarily due to significant negative working capital and high leverage relative to minimal equity. While the company is compliant with statutory filings and holds tangible assets, the limited trading history and large borrowings raise concerns over its ability to meet short-term obligations and sustain operations without further capital or improved cash flow. Detailed due diligence on financing arrangements and operational performance is recommended before investment consideration.

C.J.M. RENOVATIONS LIMITED - Analysis Report

Company Number: 14569168

Analysis Date: 2025-07-29 14:43 UTC

1. Risk Rating: HIGH
   The company shows significant liquidity and solvency concerns given a substantial current liabilities position vastly exceeding current assets and a negative working capital position of £36,944. The presence of long-term borrowings almost equal to total assets further compounds solvency risk.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities of £42,668 versus current assets of only £5,724, indicating potential cash flow stress and risk in meeting short-term obligations.
• High Leverage: Total borrowings (bank loans) of £82,186 (£4,219 current + £77,967 non-current) against net assets of only £1,399 imply very high gearing and reliance on external financing.
• New Company with Limited Operating History: Incorporated in January 2023 with financials covering only the first reporting period; absence of turnover or profit data limits confidence in operational sustainability.

3. Positive Indicators:

• No Overdue Filings: Compliance with Companies House filing requirements is up to date, indicating governance discipline.
• Directors’ Control and Transparency: PSCs and directors are clearly identified with no disqualifications noted, which supports transparency and governance oversight.
• Tangible Fixed Assets: The company holds tangible fixed assets (£116,310) which may provide some asset backing for the liabilities, assuming realizable value.

4. Due Diligence Notes:

• Verify the nature and terms of bank loans, including covenants, interest rates, and repayment schedules to assess refinancing or default risks.
• Investigate operational revenue generation and profitability since inception to gauge business viability and cash flow projections.
• Confirm valuation and liquidity of fixed assets; determine if these assets can be used as security or converted readily to cash if needed.
• Review any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Assess the directors’ plans or strategies to improve liquidity and reduce leverage.