JEEM ENGINEERING SERVICES LTD

Executive Summary

JEEM Engineering Services Ltd shows a strong financial trajectory with improved net assets and liquidity supporting its ability to meet debt obligations. The company is well-managed with no overdue filings and a stable director base. Approval for credit facilities is recommended with routine monitoring of liquidity and profitability trends.

JEEM ENGINEERING SERVICES LTD - Analysis Report

Company Number: 13130866

Analysis Date: 2025-07-20 12:32 UTC

1. Credit Opinion: APPROVE
   JEEM Engineering Services Ltd demonstrates a stable and improving financial position with consistent positive net current assets and net equity growth. The company has maintained adequate liquidity and improved shareholder funds from £5,662 in 2023 to £10,421 in 2024. The absence of overdue filings, a single experienced director with relevant engineering consultancy expertise, and no insolvency proceedings indicate sound management and operational control. The payment of dividends to the director suggests profitability and cash availability, supporting creditworthiness.

2. Financial Strength:
   The balance sheet shows a modest but improving financial base for this micro to small-sized company. Net assets doubled over the last financial year, reflecting retained earnings growth (£5,652 profit and loss reserve in 2023 to £10,411 in 2024). Current liabilities are relatively low at £12,560 compared to cash of £22,981, resulting in a positive net current asset position (£10,421). Share capital is minimal (£10) which is typical for a small private limited company. Overall, the company exhibits a solid and growing equity base without reliance on debt.

3. Cash Flow Assessment:
   The company holds a healthy cash balance that covers current liabilities by nearly 1.8 times, indicating good short-term liquidity. Working capital is positive and has improved year-on-year, suggesting efficient management of receivables and payables. There are no indications of liquidity stress or significant creditor pressure. The dividend payments to the director from available cash reserves demonstrate confidence in ongoing cash generation.

4. Monitoring Points:

• Continue monitoring cash flow and liquidity ratios to ensure the company can meet obligations as it scales.
• Watch for any increase in current liabilities or delays in payments that could strain working capital.
• Track profitability trends and dividend policy for sustainability, given current dividend payments.
• Monitor any changes in director or management that could impact strategic or financial governance.
• Review annual accounts timely to detect any emerging risks or deterioration.