ESSJAYESS LIMITED

Executive Summary

ESSJAYESS LIMITED is a micro-sized, active private limited company engaged in online retail, currently showing negative net assets and a liquidity shortfall. While compliant with filing requirements, the financial position indicates heightened solvency risk, warranting further examination of underlying causes and operational viability before investment consideration. Continued monitoring and detailed financial review are advised.

ESSJAYESS LIMITED - Analysis Report

Company Number: 14245543

Analysis Date: 2025-07-29 18:25 UTC

1. Risk Rating: HIGH
   The company exhibits negative net current assets and net assets as of the latest financial year, indicating a deteriorating financial position which raises significant solvency concerns.

2. Key Concerns:

• Negative Net Assets: The net assets have declined from £948 in 2023 to -£2,348 in 2024, showing accumulated losses or increased liabilities eroding shareholder funds.
• Liquidity Deficit: Current liabilities (£4,873) exceed current assets (£2,525) as of 2024 year-end, pointing to a working capital shortfall and potential difficulties in meeting short-term obligations.
• Limited Scale and Operational Resources: The company is micro-sized with only one employee on average and minimal asset base, which may limit operational resilience and the ability to generate cash flow.

3. Positive Indicators:

• Compliance and Timely Filing: Accounts and confirmation statements are up to date and not overdue, reflecting good regulatory compliance.
• Company Status Active: The company remains active with no indications of insolvency proceedings or administration.
• Small Employee Base: A single employee likely keeps operating costs low, which may be beneficial if managed carefully.

4. Due Diligence Notes:

• Investigate the nature and cause of the negative net assets—are these due to operational losses, creditor pressures, or other liabilities?
• Review cash flow statements if available to assess liquidity trends and cash burn rate.
• Clarify the business model viability given the micro scale and Internet retail SIC code—specifically, revenue generation and profitability outlook.
• Check for any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Understand director intentions or plans to recapitalize or restructure to address financial weakness.