JJT DESIGN & BUILD LIMITED

Executive Summary

JJT DESIGN & BUILD LIMITED is a newly incorporated micro-entity operating in building completion with a very weak balance sheet characterized by negative working capital and minimal equity. The company currently lacks adequate financial strength and liquidity to service credit facilities reliably. Credit approval is not recommended without significant mitigating factors or additional security.

JJT DESIGN & BUILD LIMITED - Analysis Report

Company Number: 13881056

Analysis Date: 2025-07-20 12:42 UTC

1. Credit Opinion: DECLINE

JJT DESIGN & BUILD LIMITED is a micro private limited company incorporated in early 2022 with an active status. The latest financials for the year ending 31 January 2024 show the company is operating with a very thin equity base (£83 net assets) and persistent negative net current assets (-£2,068), indicating working capital deficiencies. This suggests limited short-term liquidity to meet obligations as they fall due. The company’s net assets have declined from £177 in 2023 to £83 in 2024, reflecting a deteriorating financial position. Given the very small scale, minimal fixed assets (£2,151), and negative working capital, the company currently lacks financial strength to comfortably service debt or absorb shocks. The directors are individuals with full control but there is no evidence of significant financial resources or reserves. The lack of audit and limited disclosures also constrain assessment of profitability and cash flows. Overall, the company presents a high credit risk profile and does not demonstrate sufficient financial resilience or capacity to support new lending without additional security or guarantees.

2. Financial Strength

The balance sheet is very fragile. Fixed assets are minimal and have decreased slightly. Current assets (£4,579) are insufficient to cover current liabilities (£6,647), resulting in negative net working capital of -£2,068. This indicates reliance on short-term credit or overdue payables. Shareholders’ funds (equity) are only £83, showing very limited capital buffer and minimal retained earnings. There are no long-term liabilities, which is positive, but the negative working capital position and erosion of net assets year-over-year highlight weak financial stability.

3. Cash Flow Assessment

The accounts do not provide detailed cash flow statements, but the negative net current assets point to a potential liquidity squeeze. The company’s inability to cover short-term creditors from current assets suggests cash flow constraints. With just two employees and low asset base, working capital management is critical, and current trends imply the company may struggle to generate sufficient operating cash flows to meet liabilities without external support or capital injection.

4. Monitoring Points

• Track improvements or deterioration in net current assets and overall net assets in future filings.
• Monitor liquidity ratios and timely payment of short-term creditors.
• Review any capital injections or shareholder loans that may improve financial strength.
• Watch for evidence of profitability or cash flow improvements in next accounts.
• Assess any changes in director or ownership structure that could impact governance or financial stewardship.