JAR ACCOMMODATION SERVICE LIMITED

Executive Summary

JAR ACCOMMODATION SERVICE LIMITED is a newly formed micro-entity with a highly leveraged balance sheet and negative working capital, indicating weak liquidity and financial vulnerability. The company presently lacks operating activity and a track record, raising concerns about its ability to service debt and meet short-term obligations. Credit approval is not recommended without substantial improvements in financial performance and liquidity.

JAR ACCOMMODATION SERVICE LIMITED - Analysis Report

Company Number: 14849224

Analysis Date: 2025-07-29 16:04 UTC

1. Credit Opinion:
   DECLINE. JAR ACCOMMODATION SERVICE LIMITED is a newly incorporated micro-entity with minimal operational history and limited financial data. The balance sheet shows a significant mismatch between fixed assets (£493,737) and current liabilities (£353,839 due after more than one year plus £137,653 due within one year), resulting in negative net current assets of £135,028 and very low net assets of only £4,870. This indicates high leverage and liquidity risk. The company’s ability to service debt and meet short-term obligations is questionable given the very low current assets (£2,625) and no reported revenue or employees. Additionally, the director’s primary occupation is pharmacist, not evidently linked to real estate management expertise, which may raise concerns about management experience in the sector.

2. Financial Strength:
   The company’s balance sheet is heavily weighted towards fixed assets, likely property, but these are financed predominantly through liabilities (£491,492 total creditors). The net asset position is marginal, and the negative working capital indicates a strained liquidity position. The company has no retained earnings or accumulated reserves, which is typical for a first-year filing but underscores the absence of an earnings buffer. The small share capital (£2) reflects minimal equity investment. Overall, the financial structure is fragile and heavily reliant on debt, which could limit flexibility.

3. Cash Flow Assessment:
   Current assets of £2,625 are insufficient to cover current liabilities of £137,653, resulting in a working capital deficit of £135,028. This suggests the company may struggle to meet short-term cash demands or unexpected expenses without additional financing. No evidence of operating cash flow or revenue generation is available yet. The absence of employees further suggests the business has not commenced significant operations or income generation. Liquidity risk is high, and the company will need to secure cash inflows or equity injections to avoid defaulting on obligations.

4. Monitoring Points:

• Monitor future filings for evidence of revenue generation, profitability, and operating cash flow improvements.
• Watch current asset growth relative to current liabilities to assess improvements in liquidity.
• Observe any changes in director or management team composition for enhanced sector expertise.
• Review any additional capital injections or debt restructuring to improve financial stability.
• Track compliance with filing deadlines and any material changes in asset valuations or liabilities.