Company Number: 13641167

Analysis Date: 2025-07-19 12:14 UTC

1. Credit Opinion: APPROVE with conditions
   J & V Affordable Limited demonstrates a stable micro-entity financial profile with positive net current assets and shareholders’ funds. While the company is small and has limited staff (average 1 employee), it maintains sufficient working capital to meet short-term liabilities. The company’s financials indicate modest but stable asset levels and equity. However, due to its small scale and limited financial history (incorporated in 2021), credit approval should be conditional on continued timely filing and monitoring of liquidity trends.

2. Financial Strength:
   The company’s balance sheet shows total assets less current liabilities of £11,148 as of 30 September 2024, down slightly from £11,593 in the prior year. Fixed assets have decreased from £6,000 at incorporation to £2,800, suggesting limited investment in long-term assets. Current assets increased from £11,826 to £20,527, which improved net current assets from £7,193 to £8,348, indicating an improved short-term liquidity buffer. Shareholders’ funds have decreased marginally from £28,483 at incorporation to £11,148, reflecting possible withdrawals or losses absorbed since start-up. Overall, the balance sheet is healthy but reflects a small-scale operation with limited capital base.

3. Cash Flow Assessment:
   Current assets principally consist of cash and receivables sufficient to cover current liabilities nearly 1.7 times, indicating adequate liquidity to service short-term obligations. The company does not report any overdrafts or short-term borrowing, reducing liquidity risk. Working capital remains positive and stable, with an increase year-on-year, which supports operational continuity. Given the micro-entity status and limited staff, cash flow volatility may be low but should be carefully monitored for any signs of strain as the business grows or contracts.

4. Monitoring Points:

• Watch for any deterioration in net current assets or liquidity ratios as these are critical for short-term debt servicing.
• Monitor the trend in shareholders’ funds for signs of capital erosion or accumulation of losses.
• Ensure continued compliance with filing deadlines to avoid penalties or regulatory issues.
• Track revenue growth and profitability as these have not been disclosed but are vital for long-term creditworthiness.
• Observe any changes in director or PSC status that may impact management stability or control.