JD ELECTRICAL AND PROPERTY SOLUTIONS LTD

Executive Summary

JD Electrical And Property Solutions Ltd is a small but improving business with positive net assets and retained earnings growth, indicating modest financial resilience. While liquidity is currently adequate, limited cash and debtor reductions warrant close monitoring to ensure ongoing repayment capacity. Credit can be extended on a conditional basis with prudent limits and regular financial reviews.

JD ELECTRICAL AND PROPERTY SOLUTIONS LTD - Analysis Report

Company Number: 13223627

Analysis Date: 2025-07-29 13:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JD Electrical And Property Solutions Ltd shows modest but improving financial strength with positive net current assets and growing shareholders' funds over the last three years. However, the company remains small with very limited share capital (£100) and low cash balances (£1,509). The trade debtors have significantly reduced from £26,500 in 2023 to £11,500 in 2024, which may indicate either improved collections or reduced sales, requiring further monitoring. The absence of an audit and detailed profit and loss figures limits insight into operational profitability. Given these factors, credit approval can be granted conditionally with limits appropriate to a small enterprise and subject to ongoing monitoring of cash flow and debtor management.

2. Financial Strength Analysis:

• The company is classified as a micro/small entity with total assets less current liabilities increasing to £17,491 in 2024 from £13,721 in prior years.
• Shareholders’ funds have increased steadily from £4,817 in 2021 to £17,491 in 2024, evidencing retained earnings growth (£3,770 profit reported in 2024).
• Current liabilities have decreased markedly from £12,792 in 2023 to a negative £4,482 in 2024 (note: negative sign here appears to be formatting; actual liabilities are £4,482, a significant reduction).
• The company holds minimal fixed assets (not disclosed, implying low capital investment).
• The share capital remains nominal (£100), limiting the equity buffer.
• The average employee count is 2, indicating a very small operational scale.

3. Cash Flow and Liquidity Assessment:

• Cash at bank is low at £1,509 (up from £13 in 2023), which may constrain the company’s ability to meet immediate obligations or absorb shocks.
• Trade debtors have halved from £26,500 to £11,500, suggesting improved debtor collection or reduced sales volume; this requires clarification to assess sustainability.
• Net current assets are positive at £17,491, indicating working capital is sufficient to cover short-term liabilities.
• The company has directors’ current accounts liabilities (£12,526), which could represent loans from or to directors; these should be clarified as they impact liquidity.
• No audit was conducted, and no detailed cash flow statement is provided, limiting full cash flow visibility.

4. Monitoring Points:

• Track debtor days and turnover trends to ensure receivables are collectible and sales are stable or growing.
• Monitor liquidity closely, especially cash balances relative to payables and directors’ accounts.
• Review any changes in directors’ current accounts and their impact on the company’s financial position.
• Require updated management accounts periodically to assess operational profitability and cash flow beyond year-end snapshots.
• Watch filing compliance and confirm no adverse changes in company status or director conduct.