JKS PUBS LIMITED

Executive Summary

JKS PUBS LIMITED demonstrates strong solvency with significant net current assets and equity backing. However, liquidity risk is evident due to minimal cash despite very high debtors, warranting further investigation of cash flow and debtor quality. The company maintains regulatory compliance and stable governance but should be monitored for operational sustainability given recent net asset declines.

JKS PUBS LIMITED - Analysis Report

Company Number: 13150297

Analysis Date: 2025-07-20 16:17 UTC

1. Risk Rating: MEDIUM

Justification: JKS PUBS LIMITED shows strong net current assets and shareholders funds relative to liabilities, indicating solid solvency as of the last reporting period. However, the extremely low cash balance juxtaposed with very high debtors raises concerns about liquidity and cash flow management. The company is relatively young and small, with minimal fixed assets and a small workforce, which may impact operational stability. No overdue filings or signs of regulatory non-compliance are evident.

2. Key Concerns:

• Liquidity Risk: Cash on hand is negligible (£63 in 2022) compared to very high debtors (~£4.66M), suggesting potential cash flow constraints if debtor collections slow or fail.
• Debtors Concentration: The balance sheet shows debtors almost equal to current assets, which may indicate significant amounts due from related parties or uncollected trade receivables that require scrutiny.
• Declining Net Assets: Net assets decreased from £4.79M in 2021 to £4.27M in 2022, reflecting accumulated losses in the profit and loss reserve which could signal profitability or operational challenges.

3. Positive Indicators:

• Strong Net Current Assets: Despite cash concerns, net current assets remain robust at over £4.2M, implying short-term obligations are well covered by current assets.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating good compliance and governance practices.
• Ownership Structure: Presence of multiple directors and a clear PSC register with substantial shareholding and voting control by committed individuals suggests stable governance.

4. Due Diligence Notes:

• Verify the nature and aging of debtor balances to assess collectability and concentration risks, including any related party transactions.
• Investigate cash flow statements and working capital cycles to understand how the company manages liquidity given the low cash reserves.
• Review recent trading performance and profitability trends beyond the abridged accounts to gauge operational sustainability.
• Confirm if there are any contingent liabilities or off-balance-sheet obligations not disclosed in the abridged accounts.
• Assess the impact of any COVID-19 or market-related disruptions on business operations and future outlook.