JAXON ENGINEERING SERVICES LTD

Executive Summary

Jaxon Engineering Services Ltd has displayed a concerning deterioration in financial position within its short operating history, showing negative net assets and working capital as of its latest accounts. While regulatory filings are up to date and ownership is concentrated, the company's solvency and liquidity pose significant risks. Further detailed financial and operational due diligence is warranted to evaluate sustainability and risk mitigation plans.

JAXON ENGINEERING SERVICES LTD - Analysis Report

Company Number: 14470833

Analysis Date: 2025-07-20 12:06 UTC

1. Risk Rating: HIGH
   The company exhibits clear signs of financial distress, including negative net assets and net current liabilities as of the latest financial year. The rapid deterioration from positive net assets to a significant negative position within one year suggests solvency risks.

2. Key Concerns:

• Solvency Risk: Net assets declined from £837 in 2023 to negative £11,167 in 2024, indicating the company’s liabilities exceed its assets substantially.
• Liquidity Concerns: Current liabilities (£6,312) exceed current assets (£3,650) as of 2024 year-end, resulting in negative working capital of £2,662, which may impede meeting short-term obligations.
• Operational Stability: The company employs only one person (director) and is a micro-entity with limited financial history since incorporation in late 2022. The rapid negative equity movement raises questions about ongoing business viability.

3. Positive Indicators:

• Compliance: The company is active with no overdue filings for accounts or confirmation statements, reflecting good regulatory compliance to date.
• Ownership and Control: A single director and majority shareholder (Andrew Mason) with full control may facilitate swift decision-making and operational oversight.
• Industry Sector: Operating in engineering-related consulting (SIC 71122), which can be scalable with low fixed costs, possibly allowing recovery if financial issues are addressed.

4. Due Diligence Notes:

• Investigate the nature and causes of the large negative movement in net assets during the 2024 financial year.
• Review cash flow statements and any interim financials to assess ongoing liquidity and operational cash generation.
• Confirm any contingent liabilities, related party transactions, or significant accruals (notably increased accruals and deferred income from £950 to £8,505) that may impact financial health.
• Assess plans by management for financial restructuring or capital injection to mitigate insolvency risks.
• Validate the director’s background and any potential conflicts or related party risks given sole control.