JC DEV LTD

Executive Summary

JC DEV LTD is a newly incorporated private limited company with minimal equity and significant director loans creating a negative working capital position. The lack of trading activity and reliance on director funding present high credit risk and poor financial resilience. Without operational cash flow or stronger capitalisation, the company is unsuitable for external credit facilities at this time.

JC DEV LTD - Analysis Report

Company Number: 13120030

Analysis Date: 2025-07-20 11:44 UTC

1. Credit Opinion: DECLINE
   JC DEV LTD presents a weak credit profile. The company has minimal equity (£2 share capital and shareholders’ funds), significant current liabilities (£70,375) entirely represented by director loans, and a persistently negative net current asset position (-£70,375) over the last three years. There is no evidence of operational activity or cash generation, as the average number of employees is zero and no turnover data is available. The business model is concentrated on investment in own real estate, but the only asset shown is an investment valued at £70,377, matching the director loan liability, indicating no external funding or trading operations. The directors’ loans suggest reliance on related-party funding rather than external creditors, which limits risk sharing. Overall, the company lacks financial substance, liquidity, and operating cash flow, posing a high credit risk with limited capacity to service external debt or support commercial obligations.

2. Financial Strength:
   The balance sheet is extremely thin with net assets of just £2 and no tangible fixed assets beyond an investment valued at £70,377. Current liabilities equal the director loans, resulting in a negative working capital position. The company’s capital structure shows no external equity injection beyond nominal share capital, and the reliance on director loans to fund investments is a risk factor. No reserves or retained earnings are reported, reflecting no profitability or reinvestment. This financial structure indicates limited financial strength and resilience to adverse business conditions.

3. Cash Flow Assessment:
   There is no reported turnover or operating activity, and the company employs no staff, suggesting no operational cash inflows. The entire liability side consists of loans from directors, implying that cash flow is dependent on director funding rather than independent business cash generation. Negative net current assets indicate potential liquidity constraints and inability to meet short-term obligations without continued director support. The absence of an operating profit and lack of cash reserves raises concerns about the company’s ability to service any new financing or supplier credit.

4. Monitoring Points:

• Watch for changes in net current assets and liquidity position to assess improvements or further deterioration.
• Track any new external borrowing or equity injections indicating business growth or restructuring.
• Monitor directors’ loan balances for increases that imply ongoing reliance on related-party funding.
• Review future accounts for evidence of trading activity or profitability that would improve creditworthiness.
• Observe compliance with filing deadlines to avoid regulatory risk.