Company Number: 14406408

Analysis Date: 2025-07-20 12:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JDW Consultancy Services Limited is a very young micro-sized private limited company in the management consultancy sector, with limited financial history. Its current financials show a marginally negative working capital position and very low net assets (£176), indicating minimal buffer against financial stress. The company is entirely controlled by a single director who has advanced funds to the company (£20,484) but has not yet seen repayment. The absence of profits or cash reserves to cover current liabilities means the company’s ability to service external debt or unexpected expenses is unproven. Approval is conditional on close monitoring and possibly requiring personal guarantees or director support to mitigate risk.

2. Financial Strength:
   The balance sheet reveals very limited fixed assets (£710) and current assets just under current liabilities (£42,597 vs. £43,131), resulting in net current liabilities of £534. Total assets less current liabilities stand at £176, reflecting a very thin equity base. The company has no retained earnings or reserves, consistent with its start-up status. The director’s loan account indicates reliance on director funding to support operations. Overall, financial strength is weak, with no margin for error and limited capital resources.

3. Cash Flow Assessment:
   Current assets largely consist of cash or receivables, but the near parity with current liabilities results in a working capital deficit. This suggests liquidity risk if liabilities come due before receivables or cash inflows are realized. The director’s advances provide temporary liquidity but represent a related-party loan rather than third-party funding. The company’s cash flow situation is fragile, and any delay in client payments or increase in expenses could cause cash flow difficulties.

4. Monitoring Points:

• Monthly cash flow and working capital position to detect liquidity issues early.
• Repayment progress on the director’s loan account to assess financial discipline and capital structure.
• Profitability and revenue growth trends in subsequent periods to build equity and reduce dependency on director funding.
• Timeliness of statutory filings and maintenance of compliance.
• Any changes in ownership or director conduct that might impact governance or risk profile.