Company Number: 13923111

Analysis Date: 2025-07-29 17:10 UTC

1. Credit Opinion: DECLINE

Jigsaw Commerce Limited presents a weak credit profile based on its most recent financials. The company is currently experiencing net liabilities of £69,488 and negative net current assets of £70,988, indicating working capital deficiency and a material risk in meeting short-term obligations. The company’s liabilities exceed its assets, and there is a continuing loss reflected in the profit and loss reserves. Furthermore, the firm depends heavily on director support, with a significant interest-free loan from the director (£64,759) to fund operations. This reliance on related party financing raises concerns about the company’s ability to operate independently and service external debt.

2. Financial Strength:

The balance sheet shows very limited fixed assets (£1,500) and a declining current asset base (from £190,116 in 2023 to £115,430 in 2024). Cash reserves have halved from £126,657 to £51,864, compounding liquidity concerns. Trade debtors have improved but remain modest relative to current liabilities, which stand at £186,418. The company has no equity buffer, with shareholders' funds negative and increasing in deficit, reflecting accumulated losses. The firm’s stock has been fully depleted in the latest year, which may reflect inventory management or sales issues. Overall, the financial position is fragile with an increasing net liability position and limited asset coverage of liabilities.

3. Cash Flow Assessment:

The company’s cash position has significantly decreased, impacting liquidity. Negative net current assets of £70,988 (up from £34,627 deficit) indicate ongoing cash flow strain. The reliance on director loans to meet obligations suggests external liquidity is insufficient. Trade creditors are minimal (£220), implying suppliers may not be heavily financing the company, but other creditors remain substantial (£179,818). The loan from the director is interest-free and repayable on demand, which while supportive, is not a sustainable external funding source. Working capital is inadequate to cover short-term liabilities, posing concerns for ongoing operational cash flow.

4. Monitoring Points:

• Monitor future profitability and cash flow generation to assess ability to reduce net liabilities.
• Track changes in director loan balance and whether it is converted into equity or repaid.
• Watch for improvement in net current assets and cash reserves to ensure liquidity.
• Assess any changes in creditor and debtor profiles, especially trade debtors’ collectability.
• Review any operational or strategic changes aimed at restoring financial stability.
• Confirm timely filing of accounts and any audit requirements as the company grows.
• Observe any increase in external financing or equity injections to strengthen capital.