Company Number: 15025202

Analysis Date: 2025-07-29 13:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   J & K ADAMBERRY LIMITED is a newly incorporated micro-entity operating in real estate letting. The company shows minimal net assets (£100) but a strong current asset to liability position with net current assets of £22,742. However, the balance sheet also reflects a matching creditor balance of £22,741 due after more than one year, indicating significant long-term liabilities or related party balances. Given the company's infancy (incorporated in 2023) and limited financial history, the credit risk is moderate. Approval is conditional on further understanding the nature of the long-term creditors, the company's cash flow generation, and the financial strength of the directors/owners who appear to hold equal control.

2. Financial Strength:
   The balance sheet shows total assets of £22,841 balanced against liabilities, leaving net assets and shareholder funds at only £100. Fixed assets are negligible (£99), and the majority of assets are current (£22,742), indicating liquidity is focused on short-term assets. The matching creditor amount falling due after more than one year (£22,741) is unusual for a micro-entity and suggests significant long-term payables or loans. The micro-entity status limits disclosure detail, but the balance sheet structure implies limited equity cushion and reliance on external funding or related party financing. The company employs 2 people, indicating a small operational scale.

3. Cash Flow Assessment:
   Current assets exceed current liabilities, giving a positive working capital position, which is favorable for short-term liquidity. However, the presence of almost equal long-term creditors to current assets may constrain cash flow flexibility. There is no explicit cash or bank balance disclosed, so the exact liquidity position is unclear. The company’s ability to generate operating cash flows is uncertain given the absence of a profit and loss statement or turnover data. The directors' personal financial strength and willingness to support could be important for liquidity support.

4. Monitoring Points:

• Development of turnover and profitability in future filings to assess operational cash generation.
• Clarification on the nature and repayment terms of long-term creditors.
• Timely filing of accounts and confirmation statements to maintain compliance status.
• Changes in net assets and working capital trends to detect financial stability or stress.
• Director involvement and any related party transactions given their 25-50% share control each.