JJG GAS SERVICES LTD

Executive Summary

JJG GAS SERVICES LTD is a newly established micro-entity with a positive net asset position but negative working capital, indicating potential short-term liquidity challenges. Given the limited trading history and small scale, credit approval is recommended on a conditional basis, with close monitoring of cash flow and operational performance. The director’s full ownership and relevant industry experience provide some assurance of management quality.

JJG GAS SERVICES LTD - Analysis Report

Company Number: 15113634

Analysis Date: 2025-07-19 12:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JJG GAS SERVICES LTD is a recently incorporated micro-entity (incorporated September 2023) operating in plumbing and heating installation. The company shows positive net assets (£1,566) but negative net current assets (-£6,529), indicating current liabilities exceed current assets. Given the company's very short trading history (one financial year) and small scale, credit approval should be conditional on ongoing trading performance and improved liquidity. The director’s 100% ownership and active role in the industry is a positive factor, but limited financial history adds risk.

2. Financial Strength:
   The balance sheet reveals fixed assets of £8,095, current assets of only £1,192, and current liabilities of £7,721. This results in negative working capital of £6,529, which is a potential concern for short-term obligations. However, net assets (shareholders’ funds) remain positive at £1,566, reflecting some equity invested by the owner. The company has 2 employees and is a micro-entity, suggesting limited operational scale and modest asset base.

3. Cash Flow Assessment:
   The negative net current assets position means the company may face liquidity constraints in the short term. Current liabilities surpass current assets significantly, which could impact the company’s ability to meet immediate debts without additional cash inflows or financing. Careful monitoring of cash flow management and working capital is advised. The absence of detailed profit and loss data limits assessment of operating cash flow, so future filings should be reviewed closely.

4. Monitoring Points:

• Liquidity improvements: Monitor current ratio and working capital to ensure current liabilities are manageable.
• Profitability and cash generation in subsequent financial periods.
• Timely filing of accounts and confirmation statements to maintain compliance.
• Director’s continued involvement and capital injections if needed to support liquidity.
• Any changes in credit terms with suppliers or customers that could impact cash flow.