Company Number: 13191470

Analysis Date: 2025-07-29 17:30 UTC

1. Credit Opinion: DECLINE
   GJSP LIMITED displays a pronounced negative net asset position worsening over the last three years, with net liabilities increasing from £16k in 2023 to nearly £27k in 2024. The company’s current liabilities significantly exceed current assets, resulting in negative working capital of £19,199 as of February 2024, indicating liquidity stress. The persistent net current liabilities and insufficient cash balances (£1,226 in 2024) pose a high risk to the company’s ability to meet short-term obligations. Additionally, the lack of filed profit and loss data limits visibility on profitability, but the balance sheet trend suggests ongoing losses. Given these factors, extending credit without substantial mitigating information or guarantees is not advisable.

2. Financial Strength:
   The balance sheet shows a deteriorating financial position. Total assets do not cover liabilities, and shareholder funds are deeply negative (£-26,965). Trade creditors and tax liabilities are increasing, and long-term creditors remain significant (£7,666). The company’s share capital is minimal (£100), providing little equity buffer. Overall, the company is financially weak, with insufficient capital to absorb losses or fund growth.

3. Cash Flow Assessment:
   Cash holdings have declined sharply from £2,830 to £1,226 over the last year, while current liabilities have increased by over £6,000. Debtor balances have also dropped significantly, suggesting either reduced sales or collection issues. Negative net current assets indicate poor liquidity and potential cash flow constraints. The company’s ability to generate sufficient operating cash flow to meet liabilities appears compromised.

4. Monitoring Points:

• Track monthly cash flow and working capital trends to identify any improvements or further deterioration.
• Monitor creditor payment behavior to assess trade relationship stability.
• Review updated management accounts or P&L data when available to assess profitability and cash generation.
• Watch for any director or shareholder capital injections or restructuring efforts.
• Keep an eye on tax and social security liabilities as these have increased notably.