JAVER LABS LTD

Executive Summary

Javer Labs Ltd is a micro-entity with a weak financial position characterized by negative net assets, working capital deficits, and limited operational scale. The company currently lacks the financial strength and liquidity to support new credit facilities. Continued monitoring of liquidity improvements and capital structure changes is essential before reconsidering credit exposure.

JAVER LABS LTD - Analysis Report

Company Number: 14177208

Analysis Date: 2025-07-20 16:35 UTC

1. Credit Opinion: DECLINE
   Javer Labs Ltd shows persistent net liabilities and negative shareholders' funds with worsening balance sheet position from 2023 to 2024. The company’s current liabilities exceed current assets, indicating working capital deficits and liquidity pressure. There is no evidence of profitability or cash flow improvement, and the company is in a weak financial position to service new debt or credit facilities. Being a micro-entity with only one employee and minimal fixed assets further limits operational scale and financial resilience.

2. Financial Strength:

• Total net liabilities of £5,418 as at 30 June 2024, improved slightly from £8,764 net liabilities in 2023 but still significantly negative.
• Fixed assets are minimal (£3,034), and current assets (£8,675) are insufficient to cover current liabilities (£9,336), resulting in a net current liability of £661.
• The company's capital and reserves remain negative, indicating accumulated losses and insufficient equity buffer.
• Creditors due after one year (£7,791) also weigh heavily on the balance sheet, suggesting outstanding long-term obligations without corresponding asset coverage.

3. Cash Flow Assessment:

• Negative net current assets highlight liquidity challenges, with current liabilities exceeding current assets by £661 in 2024, though this is an improvement from £2,550 in 2023.
• No detailed profit and loss or cash flow statements are provided, but the deterioration in shareholders’ funds and persistent net liabilities imply ongoing losses or cash burn.
• The company employs only one person (likely the director), indicating limited operating scale and potential cash flow constraints.
• Banking facilities should be approached cautiously as there is no indication of positive cash generation or working capital sufficiency.

4. Monitoring Points:

• Monitor quarterly management accounts for improvement in liquidity and profitability.
• Watch for changes in creditor terms or any restructuring of long-term liabilities.
• Review any director or shareholder capital injections that could strengthen equity.
• Keep track of filings and confirm annual accounts and confirmation statements remain timely to reduce compliance risk.
• Watch for any material changes in business model or contract wins that could improve revenue and cash flow.