Company Number: 14062092

Analysis Date: 2025-07-29 20:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GJRM CONSULTING LTD is a micro-entity with a short operating history since incorporation in April 2022. The company demonstrates modest but positive net assets and manageable short-term liabilities, indicating a basic level of financial stability. However, the sharp reduction in current assets and shareholders’ funds from 2023 to 2024 suggests a decline in liquidity and equity, raising caution. Given the sole director and shareholder controls the business fully, credit is extended subject to monitoring of cash flow trends and confirmation of ongoing trading performance.

2. Financial Strength:

• Shareholders’ funds decreased markedly from £28,885 in 2023 to £9,470 in 2024, reflecting either losses or withdrawals.
• Current assets dropped from £35,660 to £11,692, reducing liquidity.
• Current liabilities declined from £6,775 to £2,222, improving working capital somewhat.
• Net current assets remain positive (£9,470 in 2024), but the contraction in capital base signals weakening financial resilience.
  Overall, the balance sheet remains solvent but shows signs of financial strain that need close supervision.

3. Cash Flow Assessment:

• The company holds limited current assets, largely cash or equivalents given the micro-entity nature, but the reduction year-over-year implies constrained cash flow.
• Low current liabilities reduce immediate pressure but also reflect limited operational scale.
• With only one employee and no audit requirement, cash flow management appears tight and dependent on the director’s ongoing support.
• The absence of detailed profit and loss data restricts full cash flow analysis, so ongoing liquidity confirmation is essential.

4. Monitoring Points:

• Quarterly review of cash balances and working capital levels to detect liquidity issues early.
• Watch for changes in shareholders’ funds in forthcoming accounts to assess profitability or further capital depletion.
• Confirmation of trade volumes and payment patterns to evaluate revenue consistency.
• Monitor director conduct and any changes in ownership or control that could impact credit risk.
• Ensure timely filing of statutory accounts and confirmation statements to maintain transparency.