GLOPACK JSM SOLUTIONS LIMITED

Executive Summary

Glopack JSM Solutions Limited shows improving financial strength with increasing net assets and positive working capital, supporting its ability to meet short-term obligations. However, the company’s liquidity is impacted by rising debtor balances, including amounts from related parties, which necessitates close monitoring of cash flow and debtor management. Overall, credit facilities may be approved with conditions focusing on debtor collection and liquidity safeguards.

GLOPACK JSM SOLUTIONS LIMITED - Analysis Report

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.