JC STRATEGY LTD

Executive Summary

JC STRATEGY LTD exhibits strong financial health with robust cash reserves and low liabilities, supporting a positive credit decision. The company’s balance sheet strength and liquidity profile indicate a low risk of default on credit obligations. Continued monitoring of receivables and tax liabilities is recommended to maintain credit quality.

JC STRATEGY LTD - Analysis Report

Company Number: 12881561

Analysis Date: 2025-07-29 15:41 UTC

1. Credit Opinion: APPROVE
   JC STRATEGY LTD demonstrates a strong liquidity position and consistently positive net current assets with a stable equity base. The company’s current liabilities are minimal relative to cash reserves, indicating strong capacity to meet short-term obligations. There is no indication of financial distress or overdue filings, and the business operates in management consultancy, a sector with moderate risk. The lack of an audit is typical for small companies and does not raise immediate concerns given the financial strength shown.

2. Financial Strength:
   The balance sheet shows steady growth in shareholders’ funds from £126k in 2020 to £380k in 2024, reflecting retained earnings accumulation. Fixed assets are negligible (£1) and thus not a material consideration. The company maintains a healthy net current asset position (£380k in 2024), supported predominantly by cash (£381k), with low current liabilities (£14.7k). The increase in equity and working capital over the years suggests prudent capital management and profitability retention.

3. Cash Flow Assessment:
   Cash holding is strong and covers current liabilities by more than 25 times, indicating excellent liquidity. Debtors have decreased from £31k to £13.5k, improving cash conversion. Current liabilities have also decreased significantly, which reduces short-term liquidity risk. The business has maintained positive working capital throughout the period, pointing to sound cash flow management and minimal reliance on external funding.

4. Monitoring Points:

• Monitor debtor aging to ensure continued timely collections, as this impacts liquidity.
• Watch for any significant increase in current liabilities which may pressure working capital.
• Verify ongoing profitability through future accounts once income statements are available, since these are currently unaudited and not presented.
• Confirm that management maintains good control over tax liabilities, as corporation tax fluctuated significantly (£5.2k in 2024 vs. £26.3k in 2023).