JC MEDIA AND TECHNOLOGY LTD

Executive Summary

JC Media and Technology Ltd currently exhibits financial distress with net liabilities and negative working capital, indicating a weakened ability to meet short-term obligations. The company’s small scale and deteriorating balance sheet reduce its resilience to economic challenges and credit risk is elevated. Without corrective measures or evidence of improved cash flows, credit facilities are not advisable at this stage.

JC MEDIA AND TECHNOLOGY LTD - Analysis Report

Company Number: 13910776

Analysis Date: 2025-07-20 16:58 UTC

1. Credit Opinion: DECLINE
   JC Media and Technology Ltd demonstrates a weakening financial position with a net liability situation as of the latest accounts (2025). The company has moved from a positive net asset position (£74 in 2024) to a significant net liability of £2,194 in 2025, indicating erosion of equity and potential financial distress. Current liabilities exceed current assets by £1,694, signaling liquidity challenges and inability to cover short-term obligations comfortably. The micro entity status and minimal asset base further constrain financial flexibility. Without evidence of improving cash flow or external support, the risk of default on credit obligations is elevated.

2. Financial Strength:
   The company’s balance sheet shows very limited fixed assets (£64 in 2025 down from £436 in 2024) and a sharp decline in net current assets from a positive £202 to a negative £1,694. Total net assets swung from a modest positive £74 in 2024 to a negative £2,194 in 2025. This negative equity position suggests accumulated losses have depleted shareholders’ funds, undermining the company’s capital base. The small scale of operations (2 employees) and micro category classification imply limited resources to absorb shocks or invest in growth.

3. Cash Flow Assessment:
   Current assets have dropped significantly from £4,332 to £2,555 while current liabilities increased slightly, resulting in negative working capital. This indicates tightening liquidity and potential difficulties in meeting short-term creditors and operational expenses. The company’s ability to generate positive cash flow is questionable given the shrinking asset base and increasing liabilities. No auditor’s report or detailed cash flow statement is provided to confirm cash generation, raising concerns over ongoing operational cash sufficiency.

4. Monitoring Points:

• Monitor upcoming accounts to assess if the negative net asset position stabilizes or worsens.
• Track cash flow generation and timely payment of creditors to avoid default or insolvency triggers.
• Review management actions or restructuring plans to restore equity and liquidity.
• Watch for any director changes or significant control shifts that may impact governance or financial strategy.
• Follow filing compliance to ensure regulatory obligations and transparency.