Company Number: 13161469

Analysis Date: 2025-07-29 12:43 UTC

1. Credit Opinion: APPROVE with caution. Glopack JSM Solutions Limited demonstrates a stable and improving financial position with positive net assets and working capital. The company shows growth in key balance sheet metrics and maintains good creditor coverage. However, it is a small private limited company with limited operating history (incorporated 2021) and only one director, which introduces some concentration risk. The reliance on trade and related-party debtors and a director’s loan account balance suggests the need for monitoring debtor collection and related party transactions. No audit was conducted, but accounts comply with small company exemptions.

2. Financial Strength: The company’s net assets increased from £64k in 2023 to nearly £92k in 2024, driven by growth in current assets, particularly trade and other debtors which rose substantially from £63k to £284k. Fixed assets are minimal but have increased slightly. Shareholders’ funds equal net assets, indicating no external equity financing beyond the single £1 share capital. The company maintains a positive net current asset position of £90k, reflecting adequate short-term solvency. Deferred tax liability is minor (£0.4k). The balance sheet is healthy for the company’s size and industry, showing steady growth and no material solvency concerns.

3. Cash Flow Assessment: Cash at bank declined from £218k in 2023 to £51k in 2024, despite an increase in overall current assets. This is due to a notable increase in debtors, including £75k owed by associated companies and £117k in other debtors, which may impact cash flow liquidity. Current liabilities rose moderately to £244k, including a director’s loan account of ~£70k, trade creditors, and tax liabilities. The company’s working capital of £90k provides a buffer for short-term obligations. Nonetheless, the reduction in cash balance warrants monitoring to ensure ongoing liquidity and ability to meet immediate liabilities without delay.

4. Monitoring Points:

• Debtor aging and collection efficiency, especially large balances from associated companies and other debtors.
• Cash flow trends and maintenance of sufficient cash reserves to cover current liabilities.
• Director’s loan account movements and any potential related party risks.
• Profitability and turnover data (not provided here) to assess operational performance alongside financial position.
• Compliance with filing deadlines and any future audit requirements if company size thresholds change.
• Impact of any economic or sector-specific challenges on wholesale perfume and cosmetics trade.