JAKAS GROUP LTD

Executive Summary

Jakas Group Ltd is a small, privately controlled micro-entity with modest net assets and limited financial transparency. While the company is compliant with filing deadlines and currently solvent, its liquidity position and decline in net assets warrant caution. Credit approval is recommended only with conditions requiring additional financial information and ongoing monitoring of cash flow and balance sheet stability.

JAKAS GROUP LTD - Analysis Report

Company Number: 13593299

Analysis Date: 2025-07-20 18:56 UTC

Credit Opinion:
CONDITIONAL APPROVAL. Jakas Group Ltd demonstrates a positive net asset position and no overdue filings, indicating basic financial compliance and stability. However, the company operates as a micro-entity with no employees and minimal fixed assets, and shows a decline in net assets from £50,155 in 2021 to £36,754 in 2024. The negative current assets figure in 2024 (-£30) and significant current liabilities (£39,710) raise concerns about short-term liquidity, despite reported net current assets of £39,680 (likely a presentation anomaly due to negative current assets). The absence of a profit and loss account and no audit reduces transparency. Therefore, credit approval is conditional on further clarification of cash flow and operational performance.

Financial Strength:
The balance sheet shows net assets of £36,754 as of August 2024, down from £50,155 in 2021, reflecting a modest erosion of capital. Fixed assets have fallen to zero, indicating no investment in long-term resources. Current liabilities remain substantial relative to current assets, with a negative current assets figure implying possible accounting or reporting irregularities that need investigation. Shareholder funds are entirely provided by the sole director, Mrs. Natalia Jakas, who holds 75-100% ownership and control. The company has no employees, suggesting a small or possibly dormant trading operation.

Cash Flow Assessment:
The company's liquidity profile is weak given the negative current assets position, although the reported net current assets are positive, suggesting some inconsistencies or timing differences in reporting. There is no indication of operating cash inflows or outflows, and no profit and loss data has been provided, limiting the ability to assess operational cash flow or working capital cycle. The reliance on director funding and absence of external financing could constrain the company’s ability to meet short-term obligations during stress periods.

Monitoring Points:

• Verify accuracy and composition of current assets and liabilities, particularly the negative current assets figure.
• Request full profit and loss accounts and cash flow statements to evaluate operational performance and cash generation.
• Monitor changes in net assets and shareholder funds to detect further erosion of financial strength.
• Assess any director loans or guarantees supporting liquidity.
• Watch for any overdue filings or adverse changes in company status.