JCHIMP LIMITED

Executive Summary

JCHIMP LIMITED exhibits significant liquidity and solvency risks, with a negative net current asset position and declining shareholders’ funds in the latest financial year. While regulatory filings are current and ownership is concentrated for clear governance, the ongoing working capital deficits and lack of operational scale raise concerns about the company’s financial stability and sustainability. Further examination of its cash flow and business strategy is recommended to evaluate risk mitigation measures.

JCHIMP LIMITED - Analysis Report

Company Number: 13801625

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets, indicating ongoing liquidity issues; shareholders’ funds are negative in the latest year, suggesting solvency concerns. The micro-entity size and lack of employees further point to limited operational scale and resilience.

2. Key Concerns:

• Liquidity shortfall: Current liabilities (£48,469) exceed current assets (£37,176) by £11,293 as of 2023, worsening from prior years. This raises questions about the company’s ability to meet short-term obligations.
• Negative equity position: Shareholders’ funds declined from £627 in 2022 to -£1,693 in 2023, signaling accumulated losses eroding net assets and potential insolvency risk.
• Operational scale and sustainability: The company reports no employees and minimal fixed assets, operating as a micro-entity in management consultancy, which may limit its ability to generate sufficient revenue and withstand financial shocks.

3. Positive Indicators:

• Compliance and filing up to date: Accounts and confirmation statement filings are current with no overdue notices, indicating good regulatory compliance.
• Single controlling director with full ownership: Mr. Johnny Ivanson Ranny Nelson holds 75-100% ownership and voting rights, providing clear decision-making and control structure.
• No audit exemption reliance concerns: The company appropriately claims micro-entity exemption and is not required to file audited accounts, which is consistent with its size and profile.

4. Due Diligence Notes:

• Review detailed cash flow statements and bank balances (not provided) to assess short-term liquidity management and creditor payment history.
• Investigate the business model and revenue streams to understand how the company plans to address the continuing working capital deficits and negative equity.
• Clarify any contingent liabilities or off-balance sheet obligations that could worsen financial risk.
• Confirm the director’s plans or commitments (e.g., capital injections) to stabilize the financial position.
• Assess related party transactions or intercompany balances if applicable, given sole director ownership.