JCS SERVICES LTD

Executive Summary

JCS Services Ltd is financially weak with escalating net liabilities and negative working capital, relying heavily on director loans for funding. The company’s minimal cash and lack of fixed assets limit its ability to service debt or withstand economic pressures. Credit facilities cannot be recommended without significant improvement in financial performance and liquidity.

JCS SERVICES LTD - Analysis Report

Company Number: SC697029

Analysis Date: 2025-07-29 13:23 UTC

1. Credit Opinion: DECLINE
   JCS Services Ltd exhibits significant financial distress, with persistent and increasing net liabilities over the last three years, reaching a deficit of £17,862 as of April 2024. The company’s inability to generate positive net current assets and ongoing reliance on a director’s loan to finance operations raises serious concerns about its ability to service external debt or meet commercial obligations. The absence of turnover and profit data suggests limited operational activity or profitability, undermining repayment capacity.

2. Financial Strength:
   The balance sheet shows a consistent negative net asset position from the first year of trading, worsening from -£3,208 in 2021 to -£17,862 in 2024. Current liabilities, predominantly director’s loans (£18,688 in 2024), vastly exceed current assets (£827 in 2024), resulting in negative working capital of approximately -£17,862. The company holds no fixed assets, indicating a lack of tangible security. The sole funding source appears to be a director’s loan, indicating weak external capital or creditor support.

3. Cash Flow Assessment:
   Cash reserves are minimal and have only marginally increased from £274 in 2021 to £827 in 2024, insufficient to cover short-term liabilities. The negative net current assets reflect a liquidity deficit, implying the company does not generate sufficient internal cash flow to meet obligations as they fall due. The large director’s loan account suggests dependency on related party funding rather than sustainable operational cash generation.

4. Monitoring Points:

• Improvement or further deterioration in net current assets and net liabilities.
• Changes in director’s loan account balance and any new external borrowings.
• Evidence of operational turnover and positive cash flow generation in future accounts.
• Timely filing of accounts and confirmation statements to monitor compliance and ongoing activity.
• Any changes in management or business strategy that could enhance financial stability.