Company Number: 13148385

Analysis Date: 2025-07-29 14:05 UTC

Credit Opinion:
DECLINE. JBOD Food Limited exhibits significant financial distress characterized by large and increasing net liabilities, negative shareholders’ funds, and substantial working capital deficits. Despite being an active company in the food services sector with asset growth, its ability to meet short-term obligations is severely impaired. The directors’ reliance on shareholder support for going concern status further highlights risk. Credit facilities are not recommended without substantial restructuring or guarantees.

Financial Strength:
The company’s balance sheet reveals considerable weakness. At 31 July 2024, net liabilities stood at £1.8 million, worsening from £0.95 million the previous year. Shareholders’ funds are deeply negative (£-2.43 million), indicating accumulated losses exceed invested capital. While fixed assets increased substantially to £949k, current liabilities more than doubled to £1.67 million, resulting in a net current asset deficit exceeding £1 million. Long-term creditors secured by fixed and floating charges amount to £1.58 million, indicating encumbered assets and limited unsecured borrowing capacity.

Cash Flow Assessment:
Liquidity is constrained despite an increase in cash to approximately £165k from £3.5k the prior year. High trade creditors (£698k) and other creditors (£887k) due within one year outstrip current assets, primarily debtors (£454k) and stock (£32k). The negative net working capital of over £1 million signals potential cash flow pressures in meeting short-term debts. The large increase in other creditors, both current and non-current, suggests reliance on external financing or delayed payments, which may not be sustainable.

Monitoring Points:

• Continued monitoring of net current asset position and working capital management to avoid liquidity crises.
• Watch for signs of improved profitability or capital injections to reduce accumulated losses and restore equity.
• Review of creditor terms and any restructuring plans to manage secured debt levels.
• Scrutiny of cash flow forecasting, particularly debtor collections and creditor payments timing.
• Ongoing assessment of director and major shareholder support given reliance on their financial backing.