JJ TILING LTD

Executive Summary

JJ TILING LTD is a micro-sized, newly established construction company demonstrating initial profitability and a clean balance sheet. While credit approval is recommended with caution due to limited trading history and tight margins, the company shows potential for stable operations under prudent financial management. Ongoing monitoring of turnover growth, cost control, and liquidity is advised to support credit risk assessment going forward.

JJ TILING LTD - Analysis Report

Company Number: 14469562

Analysis Date: 2025-07-20 13:12 UTC

1. Credit Opinion: APPROVE with caution
   JJ TILING LTD is a newly incorporated micro-entity in the construction sector with a full first-year trading record. The company shows a modest profit and positive net assets, indicating initial operational viability and sound management. However, the limited trading history (just over one year) and small scale warrant monitoring before extending larger or longer-term credit facilities.

2. Financial Strength:

• Turnover of £422,125 in the first 13 months is reasonable for a micro company in construction.
• Profit after tax of £18,967 reflects positive but thin profitability margins given high staff costs (£348k).
• Net assets of £18,967 equal shareholders’ funds, showing no external debt and a clean balance sheet.
• Fixed assets of £18,966 are minimal, likely equipment or vehicles, fitting a micro construction business profile.
  Overall, the balance sheet is stable with no sign of leverage or accumulated losses.

3. Cash Flow Assessment:

• Current asset and liability details are not explicitly disclosed, but total assets less current liabilities equal net assets, suggesting working capital is positive but tight.
• Staff costs dominate expenses, which could strain cash flow if turnover fluctuates.
• No off-balance-sheet liabilities or contingent liabilities reported.
• The company has sufficient equity to support short-term obligations currently but may require careful cash flow management during growth or economic downturns.

4. Monitoring Points:

• Track turnover growth and profit margins in subsequent filings to ensure sustainable operational expansion.
• Monitor staff cost efficiency relative to revenue, as labor is the largest expense.
• Watch liquidity ratios and working capital closely as the company scales.
• Keep oversight on director’s management practices and any changes in ownership or control.
• Confirm timely submission of future accounts and confirmation statements to ensure ongoing compliance.