JAK PROJECTS LTD

Executive Summary

JAK PROJECTS LTD is an active, micro-entity private company with a strong asset base primarily in real estate but exhibits liquidity challenges due to negative net current assets. While regulatory compliance is up to date and net assets have grown, the high current liabilities and concentrated ownership warrant closer scrutiny of cash flow management and operational sustainability. Further due diligence is advised to understand the company’s strategy for addressing short-term obligations and governance robustness.

JAK PROJECTS LTD - Analysis Report

Company Number: 12659044

Analysis Date: 2025-07-20 18:27 UTC

1. Risk Rating: MEDIUM

Justification: JAK PROJECTS LTD shows a stable net asset position and equity growth over recent years, indicating some financial resilience. However, its current liabilities consistently exceed current assets by a significant margin, resulting in negative net working capital that raises liquidity concerns. The company operates as a micro-entity with limited disclosure, and while there are no overdue filings or governance red flags, the thin staffing and concentrated ownership also suggest operational constraints.

2. Key Concerns:

• Negative net current assets for the latest financial year (£-938k), indicating potential short-term liquidity stress despite positive net assets.
• High current liabilities relative to current assets, which could pressure cash flow and creditor relationships if not managed carefully.
• Single director ownership structure (Mrs Janet Kupferstein holding 75-100% shares and voting rights) concentrates decision-making risk and may limit governance oversight.

3. Positive Indicators:

• Net assets and shareholders’ funds have increased substantially from £20,709 in 2023 to £583,406 in 2024, suggesting improved capital structure or asset revaluation.
• No overdue statutory filings or accounts, demonstrating regulatory compliance and operational continuity.
• Fixed assets remain substantial, likely reflecting real estate holdings which underpin company value and could provide collateral or income streams.

4. Due Diligence Notes:

• Investigate the nature and maturity profile of the current liabilities to assess refinancing or repayment risk.
• Clarify how the company plans to address its negative working capital situation and whether there are cash flow forecasts supporting solvency.
• Review related party transactions or intra-group dealings given the ownership concentration and significant fixed asset holdings.
• Confirm the valuation methodology for fixed assets and whether any impairment risks exist.
• Assess the operational business model given only one employee reported and broad SIC codes encompassing property and consultancy activities.