JARVIS TECH HOLDINGS LIMITED

Executive Summary

JARVIS Tech Holdings Limited demonstrates resilience with profitability and improved margins despite a 25% revenue decline and supply chain challenges. While group cash flow remains positive and debt is being reduced, the parent company’s liquidity is strained due to high current liabilities. Conditional credit approval is recommended with close monitoring of cash flow and debt servicing capacity.

JARVIS TECH HOLDINGS LIMITED - Analysis Report

Company Number: 12945221

Analysis Date: 2025-07-20 18:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JARVIS Tech Holdings Limited is an active medium-sized private limited holding group with a core business in computer sales and distribution. Despite a significant 25% drop in turnover from £30.7M (2023) to £22.95M (2024), the company maintained profitability and increased gross profit margin from 16.8% to 18.0%. The group reduced long-term debt and improved net assets, demonstrating some financial resilience amid post-COVID market contraction and supply chain challenges. However, current liabilities on the company balance sheet stand very high at approximately £8.6M against minimal current assets (£17k debtors), indicating liquidity pressure at the parent company level. Given the complexity of the structure (a holding company with underlying subsidiaries) and the heavy current liabilities, conditional approval is recommended, subject to close monitoring of cash flow and debt servicing capability.

2. Financial Strength:

• Group net assets improved from £2.19M to £2.56M reflecting retained earnings, though goodwill remains substantial (£2.12M).
• Shareholders’ funds increased by 17% to £2.56M, indicating retained profitability despite lower turnover.
• The group has reduced long-term creditors from £2.23M to £936k, showing active debt management.
• The parent company shows significant net current liabilities (£8.58M) versus nominal current assets (£17k), which is a concern. This mismatch indicates the parent relies heavily on group funding or restructuring of liabilities.
• Tangible assets and investments are modest relative to liabilities, meaning asset coverage is limited.

3. Cash Flow Assessment:

• The group generated £1.81M cash from operations in 2024, down from £2.99M in 2023, consistent with reduced turnover.
• After interest and tax payments, net operating cash flow was £1.46M, showing positive liquidity generation at group level.
• Cash at bank increased to £1.25M, demonstrating reasonable cash reserves.
• The company balance sheet liquidity is tight at the parent level, suggesting reliance on intra-group funding or refinancing to meet short-term obligations.
• Working capital at group level remains positive (£1.31M), but lower than prior year, indicating some tightening.

4. Monitoring Points:

• Monitor turnover trends and ability to restore revenue growth post-supply chain and staffing disruptions.
• Watch cash flow closely, especially the parent company’s ability to meet significant current liabilities without external support.
• Track debt reduction progress, particularly long-term debt and creditor balances.
• Assess margin sustainability and operational efficiency improvements given market challenges.
• Observe management changes (new MD appointed Mar 2024) impact on strategic direction and financial control.