Company Number: 12476818

Analysis Date: 2025-07-20 15:31 UTC

1. Credit Opinion: APPROVE (with normal credit terms)

JDF Energy Limited demonstrates a strong recovery and significant financial improvement in the latest financial year ending February 2024. The company has moved from a net liability position in 2023 (net assets negative at £11,470) to a solid net asset position of £364,301 in 2024, primarily driven by a large increase in current asset investments (£400,000) and improved net current assets. The company’s current liabilities remain stable, and there is no indication of overdue filings or insolvency risk. The directors have complied with filing requirements and there is no evidence of financial mismanagement or director disqualification. Given the company’s improved financial position, active status, and sound management control, credit approval on standard terms is warranted.

2. Financial Strength:

• Net assets increased substantially to £364,301 in 2024 from a negative £11,470 in 2023, reflecting a turnaround in the company’s financial strength.
• Fixed assets remain modest at £2,232, showing limited capital expenditure and likely low fixed asset risk.
• The large increase in current assets to £418,016 (from £45,061) is mainly due to a new £400,000 current asset investment.
• The company’s share capital remains minimal at £100, indicating a small equity base but sufficient for company size.
• The profit and loss reserve improved from a deficit of £11,570 to a positive £364,201, indicating accumulated profits or capital injections.
• No long-term debt is reported, limiting leverage and financial risk.

3. Cash Flow Assessment:

• Cash at bank has decreased from £42,971 in 2023 to £16,343 in 2024, which may reflect investment activity or operational cash usage.
• Debtors are low (£1,673), suggesting limited trade credit risk.
• Current liabilities are stable around £55,947, well covered by current assets.
• Net current assets are strongly positive at £362,069, indicating good short-term liquidity and working capital adequacy.
• The company’s ability to meet short-term obligations appears strong with a current ratio around 7.5x (current assets/current liabilities).

4. Monitoring Points:

• Monitor the nature and liquidity of the £400,000 current asset investment to ensure it remains readily realisable.
• Watch operating cash flows to ensure that cash balances do not continue to decline without clear investment or financing rationale.
• Track any changes in current liabilities and trade creditors to identify emerging liquidity pressures.
• Review future filings for turnover and profitability trends to confirm sustainable financial performance.
• Assess any changes in director or significant control status, although currently stable with experienced local management.