JH DIGITAL MARKETING LIMITED

Executive Summary

JH DIGITAL MARKETING LIMITED is a newly established micro-entity with a strong initial balance sheet and positive working capital. While the company demonstrates a sound short-term liquidity position and no overdue filings, its limited trading history and concentrated ownership suggest cautious credit exposure initially. Continued monitoring of operational performance and financial metrics is recommended to support credit decisions as the business develops.

JH DIGITAL MARKETING LIMITED - Analysis Report

Company Number: 14633765

Analysis Date: 2025-07-29 17:40 UTC

1. Credit Opinion: APPROVE with caution. JH DIGITAL MARKETING LIMITED is a very young micro-entity company incorporated in early 2023 with its first set of accounts filed for the 13-month period ending February 2024. The company shows a positive net asset position and solid working capital, indicating it can meet short-term obligations. However, as a start-up with no reported employees and limited trading history, credit exposure should be carefully limited initially. The majority shareholding and control by a single director may concentrate risk, though no adverse director conduct is noted.

2. Financial Strength: The balance sheet as of 29 February 2024 shows total assets of £121,648, predominantly current assets (£120,659). Fixed assets are minimal (£989). Current liabilities stand at £29,953, resulting in net current assets (working capital) of approximately £90,706. Shareholders' funds equal £91,695, reflecting retained capital and minimal liabilities. The company’s financial structure is sound with a strong equity base relative to liabilities, typical for a new micro business with minimal leverage.

3. Cash Flow Assessment: Current assets are strong relative to current liabilities, indicating liquidity is sufficient to cover short-term debts. Although detailed cash flow statements are not provided, the substantial current assets suggest adequate working capital. The absence of employees may reduce operational cash outflows initially. Continued monitoring of cash conversion cycles and receivables aging will be important as trading scales.

4. Monitoring Points:

• Track revenue growth and profitability trends in subsequent accounts to assess sustainability.
• Monitor working capital management, especially debtor collections and creditor payments.
• Watch for any director changes or significant related-party transactions given concentrated control.
• Confirm ongoing compliance with filing deadlines to avoid regulatory penalties.
• Evaluate capital needs as the business scales; potential requirement for external funding could impact credit risk.