Company Number: 13652037

Analysis Date: 2025-07-20 14:08 UTC

1. Risk Rating: LOW
   Jackson Sims Recruitment Temporary Limited demonstrates a stable and improving financial position with positive net current assets and increasing shareholders' funds. The company is compliant with filing requirements, and the directors maintain control without any apparent governance issues.

2. Key Concerns:

• Taxation and social security liabilities: The significant proportion of current liabilities relates to taxation and social security (£55,391 as of 2024 year-end), which requires ongoing management to avoid cash flow strain or regulatory issues.
• High dependence on director-shareholders: The three directors collectively hold 25-50% shares and voting rights each, implying concentrated control that could present governance or succession risks.
• Sharp decrease in employee count: The average number of employees dropped from 191 in 2023 to 26 in 2024, which could impact operational capacity and revenue generation; this requires further exploration.

3. Positive Indicators:

• Strong liquidity position: Cash reserves increased significantly from £61,981 to £117,618, supporting the company’s ability to meet short-term obligations.
• Consistent growth in net current assets and shareholders’ funds: Net current assets grew from £32,264 (2023) to £80,696 (2024), reflecting improved working capital and financial health.
• Timely compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Investigate the reason for the drastic reduction in employee numbers and its impact on business operations and revenue streams.
• Review the composition and aging of taxation and social security liabilities to assess potential risk of enforcement actions or cash flow pressures.
• Confirm the nature of amounts owed by group undertakings (£18,209 in 2024) to understand intercompany balances and potential related party risks.
• Assess the business model sustainability given the recruitment industry context and any market or regulatory changes affecting employment placement agencies (SIC 78109).
• Verify directors' background and any undisclosed litigation or compliance issues beyond Companies House records.