JIMJAM THE LABEL LIMITED

Executive Summary

JimJam The Label Limited demonstrates improving net asset levels and adequate short-term liquidity, indicating some operational stability. However, the relatively high long-term liabilities relative to equity and limited operational scale suggest moderate solvency risk. Further investigation into long-term debt terms and cash flow sustainability is recommended to fully assess financial resilience.

JIMJAM THE LABEL LIMITED - Analysis Report

Company Number: 13255654

Analysis Date: 2025-07-29 15:14 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position and growth in net assets over recent years, indicating some financial stability. However, the presence of significant long-term liabilities relative to net assets and a micro-entity status with limited financial disclosure warrants a cautious outlook.

2. Key Concerns:

• High Long-Term Liabilities: The company reports long-term creditors (£364,521 as of 2024) that are substantially higher than net assets (£49,905), which could pose solvency risks if cash flows are insufficient.
• Limited Equity Base: Share capital is minimal (£100), and shareholders’ funds are modest, limiting the buffer to absorb losses or financial shocks.
• Single-Employee Operation: With only one employee on average, operational sustainability and capacity to scale or manage risks could be constrained.

3. Positive Indicators:

• Strong Current Asset Position: Current assets (£504,417) exceed current liabilities (£107,273) by a healthy margin, suggesting good short-term liquidity.
• Consistent Growth in Net Assets: Net assets increased from £3,781 in 2023 to £49,905 in 2024, indicating improving financial health.
• Timely Filing and Compliance: No overdue filings for accounts or confirmation statements, demonstrating regulatory compliance and good governance.

4. Due Diligence Notes:

• Nature and Terms of Long-Term Creditors: Investigate the composition, interest rates, and repayment terms of the long-term liabilities to assess risk exposure and covenant requirements.
• Cash Flow Generation and Profitability: Request detailed income statements and cash flow statements to understand operational cash flows and ability to service debts.
• Director Backgrounds and Related Party Transactions: Given that directors and persons with significant control overlap, review for any related party transactions or potential conflicts of interest.
• Business Model and Revenue Streams: Clarify the sustainability of business operations given the micro status and single employee, including client concentration and supply chain stability.