J&B TAPE AND JOINTERS LTD

Executive Summary

J&B TAPE AND JOINTERS LTD exhibits a concerning reversal in financial health with negative net assets and working capital at June 2024, signaling liquidity and solvency risks. The company’s short operating history and recent governance changes add to credit uncertainty. Given these factors, credit approval is not advisable without strong mitigating evidence or collateral support.

J&B TAPE AND JOINTERS LTD - Analysis Report

Company Number: 13483096

Analysis Date: 2025-07-29 15:04 UTC

1. Credit Opinion: DECLINE
   J&B TAPE AND JOINTERS LTD demonstrates significant financial deterioration in its latest financial year ending June 2024. The company transitioned from a positive net asset and working capital position in prior years to a net liability position of £780 and negative net current assets of £6,860. This indicates a liquidity strain and potential inability to meet short-term obligations without external support. Given the company’s micro size and relatively short operating history since incorporation in 2021, the financial decline raises concerns about its capacity to service debt or extend trade credit reliably. The recent change in director and shareholder control also suggests possible internal restructuring, which should be monitored but does not mitigate the immediate credit risk. Therefore, credit approval is not recommended without significant mitigating factors.

2. Financial Strength:
   The balance sheet as of 30 June 2024 reveals fixed assets of only £6,080 and current assets of £30,207 against current liabilities of £37,067, resulting in negative net current assets and overall negative net assets. In contrast, the previous two years showed net assets above £13,000 and positive working capital, indicating a marked decline in financial strength. The absence of long-term liabilities data limits a full solvency analysis, but the deterioration in equity and working capital signals weakening capital structure and potential cash flow difficulties.

3. Cash Flow Assessment:
   Negative net current assets imply that current liabilities exceed current assets, which likely pressures liquidity and working capital management. The increase in current liabilities from £5,015 in 2023 to £37,067 in 2024 is significant and unexplained by fixed asset acquisition (only £6,080), suggesting rising short-term debt or trade payables. The company’s ability to convert assets into cash quickly may be limited, and with average employees of only one, operational scale is minimal. Without details on cash flow statements, the working capital deficit and growing liabilities point to constrained liquidity and elevated risk of payment delays or defaults.

4. Monitoring Points:

• Liquidity ratios: Monitor current ratio and quick ratio to detect ongoing working capital issues.
• Creditors aging: Track trade payables and overdue liabilities for signs of payment stress.
• Profitability and cash flow: Once available, review P&L and cash flow statements for operational sustainability.
• Director and ownership changes: Assess impact of governance shifts on financial strategy and risk appetite.
• Filing timeliness: Continue monitoring accounts and confirmation statement submissions to ensure compliance.