JNB4TECH LTD

Executive Summary

JNB4TECH LTD, a micro-entity in information technology consultancy, displays negative net assets and insufficient working capital in its first financial year, reflecting weak financial health and liquidity constraints. Without evidence of capital support or operational cash flow, the company currently lacks the financial strength to meet its obligations, leading to a credit risk profile unsuitable for approval. Continued monitoring of financial performance and balance sheet improvements is essential for reconsideration of credit facilities.

JNB4TECH LTD - Analysis Report

Company Number: 14594292

Analysis Date: 2025-07-29 15:16 UTC

1. Credit Opinion: DECLINE
   JNB4TECH LTD is a newly incorporated micro-entity operating in IT consultancy since January 2023. The company’s first reported financials as of 31 January 2024 show net current liabilities of £509 and negative net assets of the same amount, indicating an immediate balance sheet weakness. With no employees and minimal current assets (£346) against current liabilities of £855, the company currently lacks sufficient working capital to meet short-term obligations. The absence of profits or retained earnings further suggests it is not generating internal cash flows to support operations or debt servicing. Given the early-stage status and poor liquidity, the company presents a high credit risk without additional financial support or guarantees.

2. Financial Strength:
   The balance sheet is weak with total liabilities exceeding current assets, resulting in negative net assets of £509. This indicates the company is technically insolvent at this snapshot in time. The micro-entity size and zero employees reflect a very small scale operation with limited resources. Shareholders’ funds are minimal and entirely negative, suggesting no equity cushion to absorb losses. No fixed assets or long-term investments are recorded, indicating limited capital base and asset backing.

3. Cash Flow Assessment:
   Current assets of £346, likely cash or receivables, are insufficient to cover current liabilities of £855. This negative working capital position signals potential cash flow issues and difficulty in meeting immediate financial commitments. No employees suggest limited payroll expenses, but the company may still face other operating costs that cannot be easily funded from available resources. The lack of historical profit or cash flow data compounds uncertainty around operational cash generation.

4. Monitoring Points:

• Subsequent trading performance and profitability to establish whether the company can improve liquidity and build equity.
• Working capital trends and whether current liabilities are being reduced or managed effectively.
• Directors’ financial support or capital injections to strengthen the balance sheet.
• Any changes in business scale, client contracts, or operational model that could impact cash flow stability.
• Timely filing of future accounts and confirmation statements to ensure ongoing compliance and transparency.