JACOO LIMITED

Executive Summary

JACOO LIMITED exhibits a moderate risk profile driven by considerable long-term liabilities and declining net assets, despite compliance with filing requirements and increased current assets. The absence of employees and reliance on directors for operations may constrain business stability. Further review of creditor terms and operational structure is recommended to fully assess financial resilience.

JACOO LIMITED - Analysis Report

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.