JAKEW CONSULTANCY LTD

Executive Summary

Jakew Consultancy Ltd is a newly established management consultancy with modest positive net assets and compliance with all filing requirements to date. While the company shows early-stage operational viability, its low cash reserves and reliance on director loans introduce moderate liquidity and solvency risks. Further assessment of debtor quality and director loan terms is recommended to fully understand financial stability and operational sustainability.

JAKEW CONSULTANCY LTD - Analysis Report

Company Number: 15219394

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (October 2023) and has filed its first set of accounts timely with no overdue filings, indicating compliance and operational setup. However, the modest net current assets (£3,034) and reliance on director loans signal moderate solvency and liquidity risks typical for an early-stage consultancy.

2. Key Concerns:

   • Liquidity Risk: Cash on hand is very low (£973) relative to current liabilities (£32,779), potentially stressing short-term cash flows despite positive net current assets supported largely by debtors.
   • Debtor Concentration / Collectability: Debtors (£34,840) form the bulk of current assets; the risk of delayed payments or bad debts could impact liquidity.
   • Reliance on Director Loans: Outstanding director loan balance (£18,590) indicates external funding dependency, and while repayable on demand, this creates potential financial strain if repayment is demanded unexpectedly.

3. Positive Indicators:

   • Compliance and Governance: Company is active with no overdue accounts or confirmation statements, demonstrating good regulatory compliance since inception.
   • Equity Position: Positive shareholders’ funds (£3,687) suggest the company started with some capital base rather than being overly leveraged.
   • Clear Control and Management: Directors are also significant shareholders with clear control (each holding 25-50%), which aligns management incentives with company performance.

4. Due Diligence Notes:

   • Review the age and collectability of trade and other debtors to assess liquidity risk more accurately.
   • Examine the terms and conditions around the director loan, including repayment schedules and interest accrual, to understand financial flexibility and risks.
   • Confirm operational revenue trends and client diversification since this is a new consultancy to evaluate sustainability and growth prospects.
   • Check for any contingent liabilities or off-balance-sheet commitments not detailed in the first accounts.