JJDS SERVICES LIMITED

Executive Summary

JJDS Services Limited exhibits strong financial health with improving net assets and excellent liquidity, supported by significant cash reserves and decreasing receivables. The company’s management consultancy business model appears resilient, with stable management and no overdue compliance filings. Based on current data, the company is well positioned to meet its credit obligations, warranting approval for credit facilities.

JJDS SERVICES LIMITED - Analysis Report

Company Number: 13133594

Analysis Date: 2025-07-20 11:04 UTC

1. Credit Opinion: APPROVE
   JJDS Services Limited demonstrates a strong financial position with healthy net current assets and positive net assets increasing year-on-year. The company’s substantial cash reserves relative to current liabilities indicate good liquidity and ability to meet short-term obligations. There are no indications of financial distress or overdue filings, and the director’s continuous tenure suggests stable management. The company’s business is in management consultancy, a sector that generally requires low capital intensity and benefits from recurring client engagements, supporting predictable cash flow.

2. Financial Strength:
   The balance sheet shows steady growth in net assets from £16,454 in 2020 to £287,226 in 2023. Shareholders’ funds have increased consistently, driven by retained earnings. Fixed assets are minimal (£923 in 2023), reflecting low capital investment requirements typical for consultancy firms. The company maintains a high level of cash (£312,664 in 2023) relative to current liabilities (£41,943), indicating a robust liquidity buffer. Deferred tax provisions are small and manageable. Overall, the company’s financial strength is solid with a clean and improving balance sheet profile.

3. Cash Flow Assessment:
   Cash at bank has increased significantly from £25,807 in 2020 to £312,664 in 2023, a positive indicator of strong cash generation and effective working capital management. Debtors decreased markedly from £249,295 in 2022 to £15,757 in 2023, reducing credit risk and improving liquidity. Current liabilities have also decreased substantially from £112,004 in 2022 to £41,943 in 2023, further strengthening the working capital position. Net current assets improved from £16,371 in 2020 to £286,478 in 2023, indicating solid short-term financial health and capacity to cover liabilities without liquidity strain.

4. Monitoring Points:

• Continue monitoring debtor days and collection efficiency to maintain low receivables balance.
• Watch for any significant changes in cash flow patterns or increases in current liabilities.
• Review profitability trends once income statement data becomes available to ensure earnings sustain asset growth.
• Maintain oversight on management stability and any sector-specific risks affecting consultancy demand.