Company Number: 13253910

Analysis Date: 2025-07-20 17:07 UTC

1. Risk Rating: MEDIUM
   JHA TRADING LIMITED shows improving financial metrics but still exhibits some volatility in working capital and reliance on directors' loans. The company is active with timely filings, which is positive, yet the micro-entity status limits available financial detail, requiring cautious interpretation.

2. Key Concerns:

• Negative Working Capital in Prior Year: The 2023 accounts show net current liabilities (£-9,300), indicating liquidity stress that could affect short-term obligations.
• Significant Increase in Shareholders’ Funds Due to Capital Injection: Shareholders’ funds jumped from £26,942 in 2023 to £231,605 in 2024, largely driven by “called up share capital not paid” (£203,944). This raises questions about the nature and timing of capital contributions and whether these have been fully realized as cash or remain unpaid calls.
• Limited Operational Scale and Resources: Only one employee on average and low current assets (£876) suggest limited operational capacity and potential vulnerability to cash flow shocks or operational disruptions.

3. Positive Indicators:

• Timely Filing Compliance: Both accounts and confirmation statements are filed on time, showing good governance and regulatory compliance.
• Improved Net Assets and Working Capital: The 2024 financial year shows a turnaround with positive net current assets (£9,638) and a substantial increase in net assets (£231,605), suggesting improved solvency compared to previous years.
• Stable Directorship and Control: Directors are clearly identified with no disqualifications noted, and one director holds majority shareholding and voting control, which can support decisive management.

4. Due Diligence Notes:

• Verify the nature of the “called up share capital not paid” figure (£203,944) and confirm whether this amount has been collected or represents outstanding calls on shares.
• Investigate the provisions for liabilities (£2,983) and creditors due after more than one year (£2,039) to understand any off-balance sheet risks or contingent liabilities.
• Assess cash flow statements and bank balances (not provided) to confirm liquidity beyond the balance sheet snapshot, especially given prior year working capital deficits.
• Review the business model and customer contracts given the small scale and warehousing SIC code to evaluate operational sustainability and growth prospects.