JK SCAFFOLDING SERVICES LTD

Executive Summary

JK Scaffolding Services Ltd exhibits moderate financial stability with improving equity and asset investment but faces liquidity risks due to higher current liabilities relative to current assets. The company complies with filing requirements and is operationally active, though governance concentration and creditor obligations warrant careful monitoring. Further analysis of cash flows and creditor terms is recommended to fully assess solvency and operational sustainability.

JK SCAFFOLDING SERVICES LTD - Analysis Report

Company Number: 13021578

Analysis Date: 2025-07-20 14:20 UTC

1. Risk Rating: MEDIUM
   JK Scaffolding Services Ltd shows a mixed financial position with moderate net assets but current liabilities exceeding current assets, suggesting some liquidity pressure. Its micro-entity status limits disclosure detail. The company is relatively new (incorporated 2020) but currently active and compliant with filings.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£96,886) surpass current assets (£72,556) as of 2023, indicating potential short-term cash flow challenges.
• Creditors Due After One Year: The presence of £16,891 creditors due after one year adds to the company’s debt obligations, which could pressure cash flows if not managed effectively.
• Single Director and Shareholder Control: Mr. Jordan Knowles controls 75-100% of shares and voting rights, concentrating governance risk; limited oversight may impact operational stability.

3. Positive Indicators:

• Growing Fixed Assets: Fixed assets increased to £110,067 in 2023 from nil in previous years, indicating investment in operational capacity.
• Compliance and Timely Filings: No overdue accounts or confirmation statements; filings are up to date, reflecting good regulatory compliance.
• Positive Shareholders’ Funds: Shareholders’ funds stand at £68,759, a significant improvement from prior years (£1), showing accumulation of retained earnings or capital injection.

4. Due Diligence Notes:

• Investigate the nature and terms of current and long-term creditors to assess repayment risk and liquidity management strategies.
• Review cash flow statements and bank balances (not available here) to confirm operational cash generation and ability to meet short-term obligations.
• Evaluate the business model and contracts to ascertain sustainability and growth prospects in the scaffolding sector.
• Confirm no undisclosed related party transactions given the sole director’s controlling interest.
• Consider director’s background and any potential risk indicators beyond current data.