JMWSTUDIO LTD

Executive Summary

JMWSTUDIO LTD is a micro-entity with persistently negative net assets and working capital deficits indicating weak financial health and limited ability to service debt. The company’s lack of employees and absence of profit and loss disclosure further obscures cash flow viability. Credit facilities are not recommended without significant risk mitigation.

JMWSTUDIO LTD - Analysis Report

Company Number: 13802142

Analysis Date: 2025-07-29 17:43 UTC

1. Credit Opinion: DECLINE
   JMWSTUDIO LTD exhibits persistent and significant negative net assets (-£126.5k as of 2023), with net current liabilities exceeding £110k consistently over three years. The company has no employees and appears to rely on director funding or external creditors. Negative equity and working capital deficits indicate inability to meet short-term obligations from current assets, raising concerns about liquidity and ongoing viability. The absence of audit and profit & loss disclosure limits insight into cash flow generation. Given these factors, the company is high risk for extending credit without substantial additional security or guarantees.

2. Financial Strength:
   The balance sheet shows a micro-entity operating at a net liability position that has worsened year-on-year. Total liabilities exceed total assets by over £126k, including a new long-term creditor (£15k) in 2023. Shareholders’ funds are negative, reflecting accumulated losses. The fixed asset base appears negligible or non-existent, and the company relies entirely on creditors to fund operations. This weak financial structure undermines resilience to economic stress and reduces borrowing capacity.

3. Cash Flow Assessment:
   Working capital is negative by approximately £110k, indicating insufficient liquid assets to cover short-term debts. The company reports zero employees, and no P&L data is filed, making cash flow analysis difficult. The consistent increase in current liabilities with no corresponding asset growth suggests cash flow challenges. Without clear operating cash inflows or external capital injections, the risk of default on creditor payments is elevated.

4. Monitoring Points:

• Monitor filing of full financial statements including P&L and cash flow to assess revenue and expense trends.
• Track changes in net current assets and net liabilities for signs of financial improvement or deterioration.
• Review any director or shareholder funding injections or external financing arrangements.
• Watch for overdue filings or director changes that might signal distress.
• Assess any material contracts or client base growth supporting future cash flows.