Company Number: 14132555

Analysis Date: 2025-07-29 12:27 UTC

1. Risk Rating: HIGH
   CJRCOMPOSITES LTD demonstrates consistent net liabilities over the last three reported years, with worsening net current liabilities and negative shareholders’ funds. This indicates ongoing solvency challenges and possible financial distress for this micro-entity.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has reported net liabilities of £4,381 as at 31 May 2024, deteriorating from £2,437 the previous year, suggesting cumulative losses and erosion of equity.
• Working Capital Deficit: Current liabilities exceed current assets by £4,306, indicating potential liquidity issues and difficulty meeting short-term obligations.
• Lack of Profit and Loss Disclosure: No profit and loss account has been filed, limiting insight into operational performance and cash flow generation, which raises transparency concerns.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting compliance with statutory filing requirements.
• Active Status with No Liquidation: The company remains active and not under administration or liquidation, which suggests ongoing operations despite financial challenges.
• Small Workforce: An average of one employee suggests a lean operational structure, potentially limiting fixed overhead costs.

4. Due Diligence Notes:

• Investigate the company’s cash flow situation and funding sources to understand how it meets current liabilities given negative net assets.
• Request management accounts or internal financial statements to assess recent operational performance and future prospects.
• Clarify the nature and timing of creditors to evaluate if there is any risk of insolvency or creditor pressure.
• Confirm the director’s plans for addressing ongoing negative equity and whether additional capital injections or restructuring are anticipated.