JDA ARCHITECTURE LTD

Executive Summary

JDA Architecture Ltd is a micro-entity in its first year with a clean balance sheet and positive net working capital, reflecting adequate initial financial strength. However, limited operating history and director loan reliance introduce some credit risk. Conditional credit approval is recommended, with emphasis on monitoring trading results, cash flow, and director loan activity over the coming year.

JDA ARCHITECTURE LTD - Analysis Report

Company Number: 14687033

Analysis Date: 2025-07-29 13:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JDA Architecture Ltd is a newly incorporated micro private limited company with a single director and shareholder. The latest financials show a modest but positive net asset position (£53.6k) and net current assets (£52.5k), reflecting a sound short-term liquidity position. However, the company is in its first year of trading with limited financial history and no audit, increasing uncertainty regarding its ability to generate sustainable profits and cash flow. The director has an advance from the company (£12.5k), which although interest-free and repayable on no fixed date, indicates some internal liquidity management. Given the limited operating history, credit approval should be conditional on monitoring trading performance and cash flow generation over the next 12 months.

2. Financial Strength:
   The balance sheet is healthy for a start-up micro entity: minimal fixed assets (£1,057), robust current assets (£81,584) mainly cash and debtors, and manageable current liabilities (£29,044). The net asset base is entirely equity funded with no long-term debt, indicating no gearing risk at this stage. The company’s capital structure is straightforward, with the sole director holding 75-100% control, providing clear accountability. Absence of provisions, accruals, or contingent liabilities is positive. Overall, the financial position is stable but limited in scale.

3. Cash Flow Assessment:
   Current net working capital is strong (£52.5k), indicating good short-term liquidity. However, the director's loan balance of £12.5k is significant relative to equity and current assets, and the advance’s repayment terms lack fixed timing, which could affect liquidity if called upon. The company’s micro-entity status and exemption from audit mean detailed cash flow statements are unavailable, limiting cash flow visibility. The existence of only one employee and no long-term debt further reduces fixed overheads, supporting cash flow flexibility. Close monitoring of cash inflows from operations and debtor collections will be necessary.

4. Monitoring Points:

• Trading performance and profitability in the next 12 months to validate sustainable cash generation
• Changes in working capital, especially debtor and creditor balances
• Director loan account movements and any repayment or further advances
• Timely filing of subsequent accounts and confirmation statements to ensure compliance
• Any expansion of employee headcount or capital expenditure that could affect liquidity