J & V BUILDING SERVICES LTD

Executive Summary

J & V BUILDING SERVICES LTD is a small, micro-entity construction company with improving financial strength and solid liquidity. The absence of fixed assets and reliance on current assets require continued monitoring of cash flow and operational performance. Credit approval is recommended with routine review of working capital and business activity to ensure ongoing repayment capacity.

J & V BUILDING SERVICES LTD - Analysis Report

Company Number: 13556809

Analysis Date: 2025-07-20 11:02 UTC

1. Credit Opinion: APPROVE with caution. J & V BUILDING SERVICES LTD demonstrates a stable financial position with positive net assets and increasing working capital. The company operates within a low-risk micro-entity framework and has no overdue filings, suggesting regulatory compliance and sound management discipline. However, being a micro-sized construction firm with only two employees and no fixed assets implies limited operational scale and asset backing, which could constrain resilience in prolonged economic downturns. Continued monitoring is advised given the modest business size and limited asset base.

2. Financial Strength: The balance sheet shows progressive strengthening over the past three years. Net assets have increased from £8,701 in 2021 to £33,912 in 2024, mainly driven by growth in current assets and reduction in current liabilities. The absence of fixed assets indicates the company does not rely on capital-intensive investments, which aligns with its micro classification. Shareholders’ funds have similarly grown, reflecting retained earnings or capital injections. No long-term liabilities or provisions are recorded, reducing solvency risk.

3. Cash Flow Assessment: Current assets of £60,332 against current liabilities of £25,862 yield a healthy net current asset position (£35,912), indicating good short-term liquidity and working capital adequacy. The increase in working capital from £20,382 in 2023 to £35,912 in 2024 suggests improved operational cash flow management or receivables collection. The small number of employees (2) likely keeps operating expenses low, enhancing cash flow stability. No overdrafts or external borrowings are noted, implying low financial leverage.

4. Monitoring Points:

• Maintain close oversight of receivables and payables to ensure continued positive working capital.
• Watch for any increase in liabilities or introduction of debt that could pressure liquidity.
• Monitor turnover and profitability trends as these are not reported here but critical for ongoing creditworthiness.
• Assess any changes in director or shareholder structure that might impact governance or financial support.
• Given the lack of fixed assets, evaluate the company’s ability to invest in growth or withstand market shocks.