JAC SECURE LIMITED

Executive Summary

JAC Secure Limited shows a weakened financial position with minimal liquidity and declining net assets, posing significant risk to credit providers. The company currently lacks sufficient cash flow and equity to support new credit facilities. Close monitoring of cash flow and capital injections will be essential before any credit approval can be considered.

JAC SECURE LIMITED - Analysis Report

Company Number: 13114191

Analysis Date: 2025-07-20 13:51 UTC

1. Credit Opinion: DECLINE
   JAC Secure Limited demonstrates significant deterioration in its financial position over the last two years, with net current assets declining sharply from £502 in 2023 to only £201 in 2024. The company has minimal cash reserves (£619 in 2024) and no debtors balance, indicating either a cessation or substantial reduction in trading activity. The company’s ability to generate cash flow appears limited, and its current liabilities, while reduced, still represent a sizeable burden relative to current assets. The lack of an operating profit or retained earnings and the minimal equity base (£201) further weaken creditworthiness. Given these factors, the company is not currently capable of servicing new or existing credit facilities without additional capital support.

2. Financial Strength: Weak
   The balance sheet is very thin with net assets of just £201 and shareholders’ funds of £200. The company’s capital structure shows minimal share capital and negligible retained earnings, indicating no buffer for absorbing losses. The decline in net current assets year-on-year from £502 to £201 signals weakening liquidity and financial resilience. The absence of fixed assets and reliance solely on current assets (mainly cash) reduces asset security for creditors. Overall, the financial strength is fragile and vulnerable to any adverse cash flow events.

3. Cash Flow Assessment: Poor Liquidity and Working Capital
   Cash on hand is extremely low at £619 (2024) down from £481 (2023), with no receivables recorded in the latest year, suggesting a halt or decline in sales. Current liabilities of £418 are manageable relative to cash but the near absence of working capital limits operational flexibility. The prior years showed large debtor and creditor balances around £19k, possibly indicating previous reliance on trade credit and extended receivables, but this has now disappeared. The company appears to have very limited liquidity to meet short-term obligations without additional funding or cash inflows.

4. Monitoring Points:

• Monitor cash balances monthly to ensure the company can meet immediate liabilities.
• Watch for any new debtor balances or revenue generation indicating recovery in trading activity.
• Review any director or shareholder injections of capital to support liquidity.
• Examine future financial statements for improvement in net current assets and equity base.
• Track director and management actions to improve cash flow or restructure liabilities.