Company Number: SC677741

Analysis Date: 2025-07-29 20:34 UTC

1. Risk Rating: MEDIUM
   JC1969 LIMITED exhibits a mixed financial position with recent deterioration in liquidity and increased long-term liabilities, which raises concerns about its short-term solvency despite a positive net asset position. The company is micro-sized with minimal equity and limited operational scale, which inherently carries some risk.

2. Key Concerns:

• Negative Net Current Assets in 2024: The company’s working capital turned negative (£-2,350) in the latest year, indicating potential liquidity stress to meet short-term obligations.
• Significant Increase in Long-Term Liabilities: Creditors due after more than one year jumped sharply to £18,326 in 2024 from just £376 in 2023, possibly indicating increased borrowing or deferred liabilities that may pressure future cash flows.
• Single Director and Employee: The company is operated by one director, who is also the sole employee, suggesting operational dependency on a single individual and limited capacity to scale or manage unforeseen disruptions.

3. Positive Indicators:

• Consistent Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and good governance practices.
• Stable Net Asset Position: Despite liquidity issues, net assets have grown modestly from £2,522 in 2023 to £2,656 in 2024, showing some retained earnings or asset growth.
• Exemption from Audit with Prepared Accounts: The company’s use of micro-entity provisions and unaudited accounts is appropriate for its size and suggests efficient reporting aligned with regulatory requirements.

4. Due Diligence Notes:

• Clarify Nature of Long-Term Liabilities: Investigate the composition and terms of the increased long-term creditors to assess repayment risks or contingent obligations.
• Cash Flow Analysis: Obtain cash flow statements or bank details to evaluate the company’s ability to manage short-term cash demands given negative working capital.
• Business Model and Revenue Streams: Understand the underlying business activities related to bookkeeping and unlicensed carrier services, assessing sustainability and revenue diversification.
• Director Background: Review the director’s expertise and history, considering he is the sole operator, to evaluate managerial capacity and risk of operational continuity.