JNN METALWORKS LTD

Executive Summary

JNN Metalworks Ltd is a start-up micro-entity with a fragile financial position, showing negative net worth and limited assets. While it currently maintains positive working capital, its ability to service debt depends on rapid business development and cash flow improvement. Credit should be considered cautiously with monitoring of financial performance and liquidity going forward.

JNN METALWORKS LTD - Analysis Report

Company Number: 14470646

Analysis Date: 2025-07-29 21:01 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JNN Metalworks Ltd is a newly incorporated micro-entity active in metal fabrication, with a short operating history (since Nov 2022). Its latest accounts show a minimal net current asset position (£669) but a small net liability on the balance sheet (£81 negative equity), indicating early-stage financial fragility. The company has no employees and is likely not yet generating significant revenue or profit. While there is no overdue filing, the limited scale and negative net worth warrant cautious credit consideration. Approval for modest credit facilities may be considered if supported by strong personal guarantees or clear business plans demonstrating imminent cash flow improvement.

2. Financial Strength:
   The balance sheet as of 30 Nov 2023 shows current assets of £3,009 against current liabilities of £2,370, resulting in positive working capital of £669. However, after accounting for accruals and deferred income (£750), the company reports net liabilities of £81. Shareholders’ funds are negative, reflecting initial operating losses or start-up costs not yet offset by equity injections. The company holds no fixed assets or long-term investments, consistent with a start-up stage. Overall, the financial position is weak but typical for a micro-entity in its first year.

3. Cash Flow Assessment:
   Limited data is available on cash flows, but the small current asset base and positive net current assets suggest the company can meet short-term obligations presently. The absence of employees and minimal liabilities reduce overhead pressure. However, the negative net worth and accruals indicate some obligations remain unpaid or deferred. Without detailed profit and loss or cash flow statements, liquidity appears tight but not critically strained. Close monitoring of cash inflows and outflows is essential given the early stage and modest asset base.

4. Monitoring Points:

• Track subsequent annual accounts to assess profitability trends and equity build-up.
• Monitor cash flow statements and working capital changes to ensure sustained liquidity.
• Watch for any overdue filings or director changes that may indicate operational issues.
• Review any new borrowings or credit lines taken and their servicing status.
• Evaluate management’s ability to grow the business and improve financial metrics over the next 12 months.