JM WINDOWS WSM LTD

Executive Summary

JM WINDOWS WSM LTD is a recently incorporated micro-entity with a strong liquidity position and growing shareholders’ funds, indicating low immediate solvency risk. The company complies with filing requirements and maintains positive working capital, though its limited operational history and lack of employees warrant further investigation. Overall, the financial data suggests prudent management but calls for deeper due diligence on operational structure and asset quality.

JM WINDOWS WSM LTD - Analysis Report

Company Number: 14020249

Analysis Date: 2025-07-29 13:15 UTC

1. Risk Rating: LOW
   JM WINDOWS WSM LTD demonstrates a solid equity position with shareholders’ funds nearly 2.4 times its current liabilities as of the latest financial year. The company is current on all filings and accounts, indicating good regulatory compliance. Despite its micro-entity size and very recent incorporation, the firm shows growth in net assets and current assets, suggesting prudent financial management.

2. Key Concerns:

• Limited operating history: Incorporated in 2022 with only two full years of financial data; this restricts trend analysis and increases uncertainty about long-term sustainability.
• No employees reported: The absence of employees may imply reliance on subcontractors or owner-directors only, which could affect operational scalability and continuity.
• Decline in fixed assets: Fixed assets decreased slightly from £6,471 to £4,992, which although small, may indicate limited reinvestment in core operational assets.

3. Positive Indicators:

• Strong liquidity position: Current assets of £54,949 against current liabilities of £17,736 yield positive net working capital of £37,213, which should comfortably cover short-term obligations.
• Increasing shareholders’ funds: Equity grew from £22,586 (2023) to £42,205 (2024), nearly doubling, signaling retained profits or fresh capital injections improving solvency.
• Timely and compliant filing records: No overdue accounts or confirmation statements, reducing regulatory risk and demonstrating governance discipline.

4. Due Diligence Notes:

• Verify the nature of current assets (cash, receivables, inventory) to assess true liquidity and the quality of working capital.
• Understand the business model and client base given the SIC code 43290 (Other construction installation) and no employees; ascertain if subcontracting or outsourcing is predominant.
• Review directors’ backgrounds and financial commitments, especially since both directors appear to be significant shareholders and operators.
• Confirm absence of contingent liabilities or off-balance sheet obligations not disclosed in micro-entity filings.
• Investigate the reasons for the decrease in fixed assets and the company's plans for capital expenditure going forward.