Company Number: 13170284

Analysis Date: 2025-07-19 12:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JELLECCO LTD is a micro-entity active in the take-away food sector with limited financial scale and low equity. The company’s net assets have decreased from £3,424 in 2022 to £1,335 in 2024, indicating some erosion of capital. Additionally, the company carries a long-term liability of £10,000 consistently, with current assets insufficient to cover all liabilities comfortably. The absence of employees suggests a very small or owner-operated business model. Given these factors, credit extension is possible but should be conditional on further evidence of cash flow from operations and management plans to improve equity and reduce liabilities. This credit line should be monitored closely for signs of financial stress.

2. Financial Strength:
   The balance sheet shows total net assets of £1,335 as of the latest accounts, down from £3,424 two years prior, reflecting weakening financial strength. Fixed assets have steadily declined from £6,076 in 2021 to £4,727 in 2024, possibly due to depreciation or asset disposals. Current assets have also fallen to £4,608, while current liabilities remain a consistent £10,000, creating a working capital deficit if solely current liabilities are considered (but note net current assets are positive, likely due to classification of creditors). Long-term liabilities of £10,000 reduce total net assets further. Overall, the capital base is thin, and the company’s leverage is moderate relative to its size.

3. Cash Flow Assessment:
   The company reports no employees and limited current assets (cash or equivalents) of £4,608 as of 2024. Current liabilities at £10,000 exceed current assets, but net current assets are reported positive, suggesting some creditor classification nuances. There is no direct cash flow statement available, but the decline in net assets implies modest or negative retained earnings. The low level of share capital (£2) highlights minimal equity injection. Liquidity appears tight, and the company may rely on shareholder support or short-term credit facilities to meet obligations. Working capital management will be critical to maintain operational continuity.

4. Monitoring Points:

• Track net asset trends and any further reductions that could impair solvency.
• Monitor cash generation and liquidity ratios to assess ability to cover short-term debts.
• Watch for changes in current liabilities or evidence of overdue payables.
• Review management actions for capital strengthening or debt restructuring.
• Confirm any changes in operational scale or employee numbers indicating growth or contraction.
• Assess any upcoming filings or director changes that may affect governance or financial strategy.