JET TEC SOLUTIONS LTD

Executive Summary

Jet Tec Solutions Ltd displays a high risk profile due to persistent negative net assets and a significant working capital deficit over multiple years. The company’s solvency and liquidity are concerning, compounded by dependence on director loans for funding. While regulatory filings are up to date and asset base exists, further due diligence on operational performance and financing arrangements is essential to assess viability.

JET TEC SOLUTIONS LTD - Analysis Report

Company Number: 12690174

Analysis Date: 2025-07-29 15:16 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net current assets and shareholders' funds over multiple years, indicating an ongoing solvency concern. The current liabilities consistently exceed current assets by a significant margin, and the company relies on a director's loan account for funding, which poses liquidity risks.

2. Key Concerns:

• Solvency Risk: The company has negative net assets for five consecutive years (e.g., -£14,163 at 30 June 2024), indicating liabilities exceed assets and potential insolvency risk.
• Liquidity Concerns: Current liabilities (£45,213) substantially exceed cash on hand (£15,513), and the working capital deficit (-£29,700) suggests potential cash flow constraints to meet short-term obligations.
• Dependence on Director Loan: The company owes the director £43,901 as an interest-free loan repayable on demand, reflecting reliance on related party financing rather than operational cash generation, which may hinder financial stability.

3. Positive Indicators:

• Active Status and Compliance: The company is active with no overdue filing of accounts or confirmation statements, showing regulatory compliance and good governance in statutory matters.
• Stable Director and Control: The company has a single director with 75-100% shareholding, which may facilitate swift decision-making and control.
• Tangible Fixed Assets: Presence of tangible fixed assets (£15,537) provides some asset backing, albeit insufficient to cover liabilities.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan and the company’s ability to repay or restructure this debt.
• Review the company’s operational cash flows and profitability trends, as the income statement was not provided; this is critical to assess sustainability.
• Evaluate contingent liabilities or off-balance sheet obligations that may exacerbate financial risks.
• Confirm whether any plans exist to improve working capital or inject additional equity to restore solvency.
• Examine industry conditions for SIC code 37000 (Sewerage) to assess market and operational risks.