Company Number: 15088976

Analysis Date: 2025-07-29 20:53 UTC

1. Credit Opinion: DECLINE
   JD (North Wales) Ltd presents a weak credit profile due to significant negative net assets and current liabilities far exceeding current assets. The company is newly incorporated (less than one year) and is reporting substantial net current liabilities (£201,648) and net liabilities overall (£144,560). This financial position indicates an inability to meet short-term obligations without additional funding, raising concerns over liquidity and repayment capacity. The absence of an audit limits assurance on financial accuracy but is typical for micro-entities. The company operates in licensed restaurants, a sector vulnerable to economic fluctuations, increasing operational risk. Given these factors, extending credit at this stage is high risk.

2. Financial Strength:
   The balance sheet reveals the company has fixed assets of £57,788 but current assets of only £3,038 against current liabilities of £204,686, resulting in a large working capital deficit. Net liabilities of £144,560 mean shareholders’ funds are negative, indicating insolvency on a book value basis. The company has no retained earnings or reserves, reflecting either startup losses or initial funding shortfalls. The micro-entity status and short operating history limit the availability of comparative financial trends, but the current position is weak.

3. Cash Flow Assessment:
   The negative net current assets indicate severe liquidity constraints. With current liabilities exceeding current assets by over £200k, the company likely faces cash flow stress and may rely on external financing or shareholder support to meet immediate obligations. The absence of detailed cash flow statements prevents precise assessment, but the balance sheet position suggests poor working capital management or insufficient operating cash inflows to cover short-term debts.

4. Monitoring Points:

• Improvement in net current assets and overall liquidity metrics.
• Profitability trends in forthcoming accounts to assess turnaround potential.
• Timely filing of accounts and confirmation statements to maintain compliance.
• Any additional capital injections or borrowing facilities to support cash flow.
• Sector-specific risks, especially impacts from regulatory changes or consumer demand in licensed restaurant operations.