Company Number: 15347530

Analysis Date: 2025-07-19 12:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JAY AUTO SERVICE LTD is a newly incorporated micro entity with limited operating history (incorporated December 2023). The company reported a modest profit of £3,339 on a turnover of £43,420 in its first 13-month period, indicating initial operational viability. However, the lack of historical financial data and very low current assets (£89) compared to current liabilities (£872) suggest limited liquidity buffer. The net current assets figure (£1,799) is supported primarily by prepayments and accrued income (£2,582), which may not be immediately convertible to cash. Given these factors, credit approval should be conditional on monitoring future trading performance and liquidity improvements.

2. Financial Strength:
   The company’s balance sheet shows net assets of £1,439, representing shareholder equity entirely attributable to the sole director and 100% owner, Mr. Julian Bylyshi. With no fixed assets reported and minimal current assets, the financial structure is fragile. The company currently operates with zero employees, suggesting low fixed overheads. The positive retained earnings (profit for the period) is encouraging but insufficient to establish a strong capital base. The company benefits from no outstanding overdue filings, indicating sound compliance practices.

3. Cash Flow Assessment:
   Cash and near-cash assets are minimal (£89), with current liabilities of £872, indicating potential short-term liquidity pressure. Net current assets are positive due to prepayments and accrued income; however, these may not be readily available to cover immediate liabilities. The company’s working capital position needs careful monitoring, and cash flow forecasts are recommended before extending credit. Absence of employee costs and low operating expenses may help conserve cash, but the company’s ability to generate consistent positive cash flow remains unproven.

4. Monitoring Points:

• Quarterly turnover and profitability trends to assess revenue growth and operational sustainability.
• Liquidity metrics including cash balances and current ratio to ensure short-term obligations can be met.
• Timeliness of future accounts and confirmation statement filings to maintain compliance.
• Any changes in director or ownership structure that might affect governance or control.
• Debtor and creditor aging data to monitor working capital efficiency once available.