JK 724 SECURITY SERVICES LTD

Executive Summary

JK 724 SECURITY SERVICES LTD is a newly incorporated micro-entity with a weak financial position characterized by negative net assets and tight liquidity. The company currently lacks sufficient financial strength and cash flow to reliably meet debt obligations or commercial commitments. Credit approval is not recommended until there is clear evidence of improved profitability, working capital, and balance sheet health.

JK 724 SECURITY SERVICES LTD - Analysis Report

Company Number: 13887339

Analysis Date: 2025-07-29 21:14 UTC

1. Credit Opinion: DECLINE
   JK 724 SECURITY SERVICES LTD shows significant financial weakness and negative equity, with net liabilities of £898 as of the latest accounts (2024-02-28). The company remains loss-making and heavily reliant on director funding or external support, as indicated by creditors falling due after more than one year totaling £13,035 in both years. The balance sheet shows limited current assets (£12,137) barely covering current liabilities (£13,035), indicating tight liquidity and working capital constraints. The company is very young (incorporated 2022) with minimal trading history, and no evidence of profitability or improving financial performance. The negative shareholders’ funds and recurring net liabilities suggest poor financial stewardship and business resilience. Given these factors, the company’s ability to service debt or honor commercial obligations is highly questionable at this stage.

2. Financial Strength:
   The balance sheet reflects a micro-entity with a net liability position of £898 and total creditors after one year of £13,035. Current assets are minimal and just under current liabilities, indicating a weak working capital position. The negative net assets reflect accumulated losses or ongoing funding requirements. No fixed assets are reported, which implies limited tangible collateral for lending. The company’s financial trajectory is negative or stagnant, with no visible improvement from the previous year’s position. Overall, the balance sheet is fragile and lacks financial cushion.

3. Cash Flow Assessment:
   The company’s liquidity is tight, with current assets (£12,137) slightly below current liabilities (£13,035). This near break-even working capital position signals limited cash flow buffer to absorb shocks or delays in receivables collection. The presence of creditors due after one year suggests some longer-term obligations, but the negative net assets indicate the firm may depend on director loans or external financing to maintain operations. The company’s small scale and limited asset base reduce its ability to generate cash internally or obtain external credit easily.

4. Monitoring Points:

• Watch for improvements in net current assets and elimination of negative shareholders’ funds.
• Monitor cash flow trends and if the company can generate operating cash profits to reduce reliance on external funding.
• Review future accounts for evidence of revenue growth, profitability, and working capital management.
• Observe director conduct and any changes in ownership or control that could impact financial stewardship.
• Track compliance with filing deadlines and any indications of financial distress or restructuring.