JAMESTOWN LTD

Executive Summary

Jamestown Ltd is a newly formed micro-entity with a minimal net asset base and negative working capital, indicating weak financial strength and liquidity challenges. The small scale and limited management experience suggest the company is not currently positioned to support credit facilities without additional security or stronger financial evidence. Ongoing monitoring of cash flow and operational performance is essential if credit is considered in the future.

JAMESTOWN LTD - Analysis Report

Company Number: 14721588

Analysis Date: 2025-07-20 16:36 UTC

1. Credit Opinion: DECLINE

Jamestown Ltd is a very recently incorporated micro-entity with limited financial history and minimal net assets (£18). Its current liabilities exceed current assets by £1,152, indicating a working capital deficit and potential liquidity constraints. The company has only two employees and operates in landscape service activities, a sector that can be sensitive to economic cycles but generally low capital intensive. The directors are both gardeners by occupation and shareholders, suggesting a small, owner-managed business with likely limited financial management experience. Given the negative net current assets and negligible equity base, the company currently lacks the financial strength and operational scale to comfortably service debt or absorb financial shocks. No profit or cash flow data is available to indicate positive earnings or cash generation. Therefore, granting credit at this early stage without additional security or guarantees is high risk.

2. Financial Strength:

The balance sheet at 31 March 2024 shows fixed assets of £1,170 and current assets of £4,007, offset by current liabilities of £5,159. Net current liabilities of £1,152 imply the company’s short-term obligations exceed its liquid resources. Net assets stand at a marginal £18, reflecting minimal capitalization and retained earnings. The micro company status indicates limited filing requirements and small scale. Absence of profit and loss data limits assessment but the very low net asset base and working capital deficit point to fragile financial strength.

3. Cash Flow Assessment:

Current liabilities exceeding current assets suggest potential cash flow strain in meeting short-term obligations. The company’s small size and limited asset base reduce its ability to generate or access additional cash quickly. With no reported retained profits or cash reserves, the liquidity position is weak. The business may rely on director funding or external support to manage day-to-day working capital needs. Cash flow risks are heightened due to the lack of financial buffer and possible irregular income streams typical of landscape services.

4. Monitoring Points:

• Quarterly updates on cash flow and working capital to detect liquidity issues early.
• Profit and loss performance to assess operational viability and earnings growth.
• Changes in current liabilities and creditor payment terms indicating stress or improvement.
• Director and shareholder financial support or capital injections.
• Any change in business scale, employee count, or asset investment.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.