CU JIMMI LIMITED

Executive Summary

CU JIMMI LIMITED is a small, newly incorporated forestry business with a consistently negative net asset position and weak liquidity. The company’s limited scale and deteriorating working capital position suggest it currently lacks the financial strength to support additional credit. Continued monitoring of cash flows and operational progress is essential before reconsidering credit exposure.

CU JIMMI LIMITED - Analysis Report

Company Number: SC739863

Analysis Date: 2025-07-29 14:46 UTC

1. Credit Opinion: DECLINE
   CU JIMMI LIMITED demonstrates a weak financial position with negative net assets for the last three consecutive years and increasing net liabilities. The company’s micro size and very limited scale of operations (one employee including director) limit its capacity to generate significant revenue or cash flow. The absence of profit and loss data and the filing under micro-entity provisions restrict detailed financial insight, but the persistent net liability position indicates insufficient capital and potential ongoing losses. Given these factors, the company lacks the financial resilience and cash generation ability to reliably service debt or credit facilities at this stage.

2. Financial Strength:
   The balance sheet shows fixed assets declining slightly from £19,067 in 2023 to £16,949 in 2024, but this is marginal. More critically, net current liabilities have worsened from -£22,530 to -£24,089, driving a net liability position from -£3,463 to -£7,140. This indicates increasing short-term obligations exceeding current assets and a deteriorating working capital position. The negative shareholders’ funds reflect accumulated losses or possibly shareholder loans treated as liabilities, highlighting weak equity support. Overall, the company’s financial structure is fragile with no buffer for adverse events.

3. Cash Flow Assessment:
   No direct cash flow statement is available, but the negative net current assets imply constrained liquidity. The company’s limited operational scale (one employee) and the forestry industry’s capital intensity suggest ongoing investment needs with minimal turnover. The increasing current liabilities and declining net assets suggest the company might depend on external funding or director loans to meet obligations. This raises concerns about the company’s ability to cover short-term liabilities from operating cash flows.

4. Monitoring Points:

• Regular updates on profitability and cash flow generation once profit and loss accounts are available.
• Trends in net current assets and liabilities to detect worsening liquidity.
• Any increase in external borrowings or director loans that affect solvency.
• Operational developments or contracts that could improve revenue generation in the forestry sector.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.