JK INDUSTRIAL SERVICES LIMITED

Executive Summary

JK Industrial Services Limited, a recently incorporated private limited company, demonstrates significant financial distress with negative net assets and a heavy reliance on related-party debt. While regulatory compliance is current, the absence of employees and operational data raises concerns about business viability. Further examination of cash flow, business activity, and intercompany arrangements is essential to assess the company’s ability to meet obligations and sustain operations.

JK INDUSTRIAL SERVICES LIMITED - Analysis Report

Company Number: 13855814

Analysis Date: 2025-07-29 20:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity issues, evidenced by net current liabilities of £27,259 and net liabilities of £25,879 as at 31 March 2023. The reliance on amounts owed to group undertakings (£36,368) to meet current liabilities indicates operational cash flow challenges and potential dependency on related-party funding.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s negative shareholders’ funds and net current assets highlight an imbalance between liabilities and assets, signaling insolvency risk.
• High Related-Party Debt: Over £36,000 owed to the parent company suggests reliance on intra-group financing, which may not be sustainable or sufficient under stress.
• No Employees and Minimal Operating Activity: The average headcount is zero, and turnover data is unavailable, raising questions about operational viability and business sustainability.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are filed on time with no overdue returns, demonstrating adherence to regulatory obligations.
• Established Parent Company Control: Ownership by JK Lifting Equipment Limited (75-100%) may provide strategic support or access to resources if needed.
• Low Tangible Fixed Assets: Minimal fixed assets reduce the risk of asset impairment and simplify potential restructuring or sale processes.

4. Due Diligence Notes:

• Assess Cash Flow and Funding Arrangements: Investigate the company’s cash flow forecasts and terms of amounts owed to group undertakings to understand liquidity support and repayment expectations.
• Review Business Model and Revenue Generation: Clarify the company’s operational status, client base, and revenue streams given zero employees and no income statement disclosure.
• Examine Directors’ Plans and Corporate Governance: Understand directors’ strategy to address net liabilities and whether there are plans for capital injection, restructuring, or winding down.
• Evaluate Related-Party Transactions: Scrutinize the nature and terms of related-party debts for potential conflicts or risks to minority stakeholders.