Company Number: 12516517

Analysis Date: 2025-07-20 17:56 UTC

1. Risk Rating: MEDIUM

Justification: While JACOO LIMITED remains active and compliant with filing deadlines, its financial position shows some concerns, particularly the presence of significant long-term liabilities relative to assets which may impact solvency. The micro-entity status limits available financial detail, but the data suggests potential liquidity risk and operational constraints.

2. Key Concerns:

• High Long-Term Creditors: The balance sheet dated 31 March 2024 reports £15,009 due after more than one year, exceeding the company’s fixed assets (£2,533) and significantly impacting net assets (£1,556). This indicates leveraged financing that could strain future cash flows.
• Net Asset Decline: Net assets decreased from £5,533 in prior years to £1,556, pointing toward erosion of equity and potential operational losses or increased liabilities.
• No Employees Reported: With zero employees on record, operational capacity and sustainability may rely heavily on the two directors or outsourcing, which may affect growth and resilience.

3. Positive Indicators:

• Timely Compliance: The company is up to date with accounts and confirmation statement filings, reflecting good regulatory compliance and governance.
• Increasing Current Assets: Current assets increased significantly from £2,000 to £14,032 in the latest year, potentially indicating improved short-term liquidity or receivables.
• Stable Directorship: The original two directors remain in place since incorporation, suggesting stable management and continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of the £15,009 long-term creditors to assess repayment schedules and covenants.
• Review underlying reasons for the drop in net assets and whether operational losses or asset impairments occurred.
• Clarify operational model given zero employees—determine if activities are outsourced or director-managed and implications for scalability.
• Confirm completeness of financial disclosures and whether any contingencies or off-balance sheet liabilities exist.
• Evaluate cash flow statements (not provided) to assess liquidity beyond balance sheet snapshots.