JF FENCING AND TREE SERVICES LTD

Executive Summary

JF FENCING AND TREE SERVICES LTD is a young, small private limited company with a strong liquidity position and improving equity base. The company demonstrates sound financial stewardship with no overdue filings and manageable liabilities primarily to the director. Credit approval is recommended with standard monitoring of working capital and director loan balances.

JF FENCING AND TREE SERVICES LTD - Analysis Report

Company Number: 14415988

Analysis Date: 2025-07-29 16:17 UTC

1. Credit Opinion: APPROVE
   JF FENCING AND TREE SERVICES LTD demonstrates solid financial position for its size and age. The company shows positive net assets with a growing equity base and manageable liabilities primarily consisting of a director’s loan account. The absence of overdue filings and the active status suggest sound management and compliance. While relatively small and with limited operating history, the company’s liquidity position and balance sheet strength support credit approval for typical SME credit facilities.

2. Financial Strength:
   The company’s net assets improved significantly from £13,197 in 2023 to £30,243 in 2024, indicating retained earnings growth and capital strengthening. Fixed assets decreased slightly, reflecting depreciation, but remain sufficient relative to company size. Current liabilities rose moderately to £23,521, primarily due to an increased director’s loan account, which is a related party liability and generally considered less risky than external debt. The equity is entirely shareholder funds with no external debt, demonstrating a clean capital structure.

3. Cash Flow Assessment:
   Cash at bank increased markedly from £21,610 to £47,622, providing comfortable liquidity to cover current liabilities of £23,521. Net current assets (working capital) improved from £4,981 to £24,101, reflecting a strong short-term liquidity position to meet operational needs and debt service. The company’s cash balance shows prudent cash management with sufficient buffer for contingencies. The sole employee (the director) suggests low overhead costs, enhancing cash flow stability.

4. Monitoring Points:

• Track director’s loan account levels as growth could indicate reliance on shareholder funding versus operational cash generation.
• Monitor trading performance and cash generation as the company expands, given limited operating history.
• Watch for any changes in working capital ratios to ensure liquidity remains robust.
• Review any future external borrowings or credit lines to assess impact on capital structure and liquidity.
• Confirm timely filing of future accounts and confirmation statements to maintain compliance and transparency.