JMT PROJECT & CONSULTANCY LTD

Executive Summary

JMT Project & Consultancy Ltd is currently financially weak with negative working capital and no net assets, indicating a limited ability to meet short-term liabilities or service credit. The company’s cash flow position is strained, reflecting declining receivables and minimal cash reserves. Given these factors, credit approval is not recommended at this stage without significant improvement in financial metrics or additional security.

JMT PROJECT & CONSULTANCY LTD - Analysis Report

Company Number: SC689616

Analysis Date: 2025-07-29 19:21 UTC

1. Credit Opinion: DECLINE
   JMT Project & Consultancy Ltd exhibits significant liquidity and working capital issues, with persistent net current liabilities over the last three years and zero net assets or shareholder equity. The company’s inability to maintain positive working capital and net assets raises concerns about its capacity to meet short-term obligations and service any credit facilities reliably. Given the absence of employees and limited operational scale, the business profile is very weak from a credit perspective. Without evidence of improving financial health or external support, extending credit would carry high risk.

2. Financial Strength:
   The balance sheet shows negligible fixed assets (£356) and consistent net current liabilities (£-356 at 2024 year-end). Total liabilities almost entirely comprise taxes and social security payables with no long-term debt or shareholder funds. The company’s equity remains at zero, reflecting accumulated losses or minimal capital injection beyond the nominal £10 share capital. This weak equity position undermines financial resilience, offering no buffer against operating or economic shocks.

3. Cash Flow Assessment:
   Cash holdings are minimal (£155), and debtors have declined sharply from £3,294 to £924 over the last year, indicating a contraction in receivables or client base. Current liabilities remain higher than current assets, resulting in negative working capital, which implies ongoing liquidity strain. The company’s cash generation capability appears insufficient to cover short-term liabilities, suggesting reliance on external funding or director support to sustain operations.

4. Monitoring Points:

• Track improvements in net current assets and liquidity ratios in forthcoming filings.
• Monitor debtor collection periods and creditor payment terms to assess cash flow management.
• Watch for any capital injections or changes in shareholder funds that could strengthen the balance sheet.
• Observe director conduct and any changes in operational scale or business model that might affect credit risk.