JMR AUTOMOTIVE LTD

Executive Summary

JMR AUTOMOTIVE LTD operates as a micro-entity in motor vehicle maintenance with timely statutory filings and a stable small workforce. However, its negative net current assets and low equity base suggest moderate liquidity and solvency risks that warrant further investigation of its short-term liabilities and cash flow health. Overall, while compliant and operationally stable at a basic level, financial resilience appears limited.

JMR AUTOMOTIVE LTD - Analysis Report

Company Number: 12984703

Analysis Date: 2025-07-29 14:52 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets and shareholder funds, but current liabilities exceed current assets indicating a potential liquidity risk. The micro-entity scale and limited financial disclosures also constrain a full assessment of operational sustainability.

2. Key Concerns:

• Liquidity shortfall: Current liabilities (£6,031) exceed current assets (£4,692) as of the latest year end, resulting in negative net current assets (-£1,339), which could pressure short-term obligations.
• Declining fixed assets: Fixed assets have decreased from £2,800 in 2020 to £1,792 in 2023, possibly indicating asset disposals or lack of reinvestment.
• Low capital base: Share capital is minimal (£100), and shareholders' funds are modest (£453), reflecting limited equity buffer against losses or financial shocks.

3. Positive Indicators:

• Consistent filing compliance: All statutory accounts and confirmation statements are filed on time with no overdue filings, which supports regulatory compliance and governance standards.
• Stable employee base: The company maintains a small but steady workforce (2 employees), consistent with its micro-entity status and business model.
• Single controlling shareholder/director: This may allow for streamlined decision-making and clear accountability.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to understand the composition and timing of obligations, assessing any overdue payables or short-term borrowing.
• Review cash flow statements (if available) or bank statements to evaluate actual liquidity and working capital management beyond balance sheet snapshots.
• Clarify reasons behind fixed asset reductions and check for any contingent liabilities or off-balance sheet risks.
• Assess the trading performance and profitability trends since detailed profit & loss data is not provided.
• Confirm no director disqualifications or regulatory issues with the key controlling individual.