JDA RECOVERY LTD

Executive Summary

JDA Recovery Ltd is a recently formed micro-entity exhibiting a weak financial position with negative net assets and working capital. Lack of operational data and ongoing losses raise concerns about its ability to meet credit obligations. Based on current financials, credit approval is not advised; close monitoring of future financial developments is essential.

JDA RECOVERY LTD - Analysis Report

Company Number: 14720044

Analysis Date: 2025-07-29 18:02 UTC

1. Credit Opinion: DECLINE
   JDA Recovery Ltd is a newly incorporated micro-entity with only one year of financial data. The company presents a negative net asset position of £4,494 and net current liabilities of the same amount, indicating poor liquidity and immediate solvency concerns. There is no profit and loss data filed to assess operational performance or cash generation. The company is loss-making at this early stage and does not demonstrate capacity to meet current or future debt obligations. The sole controlling director has no disclosed financial or business track record to mitigate risk. Given these factors, the credit risk is high and approval for credit facilities is not recommended at this time.

2. Financial Strength:
   The balance sheet shows a net liability position of £4,494 with current liabilities (£4,454) exceeding current assets (negative £40). This negative working capital position reflects insufficient short-term resources to cover liabilities. Total assets are minimal and the company has no fixed assets reported. Shareholder funds are negative, implying cumulative losses and no capitalization buffer. The micro-entity status limits disclosure but the financial base is clearly weak.

3. Cash Flow Assessment:
   Negative current assets and net current liabilities indicate liquidity strain. With only one employee and no reported turnover figures, operational cash inflows are unknown but likely minimal. The absence of profit and loss data prevents a detailed cash flow analysis, but the negative working capital and net liabilities strongly suggest a cash flow deficit. The company’s ability to generate positive cash flow or service debt is unproven.

4. Monitoring Points:

• Future filed accounts to assess revenue growth and profitability.
• Changes in net current assets and working capital position.
• Director appointments and any changes in management or ownership structure.
• Timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Any new capital injections or debt restructuring that may improve financial strength.