JOHN KELMAN JOINERY LIMITED

Executive Summary

John Kelman Joinery Limited exhibits a solid financial position with growing net assets and strong liquidity, supporting a low solvency and liquidity risk profile. The company maintains good compliance and operational activity within its micro-entity scope. However, the minimal asset base and single-employee structure warrant further investigation to assess operational resilience and long-term sustainability.

JOHN KELMAN JOINERY LIMITED - Analysis Report

Company Number: SC688984

Analysis Date: 2025-07-29 21:14 UTC

1. Risk Rating: LOW
   John Kelman Joinery Limited demonstrates strong net asset growth and healthy working capital relative to its size. The company is compliant with filing deadlines and has no indications of financial distress or governance issues.

2. Key Concerns:

• Minimal fixed assets (£859) may indicate limited investment in long-term operational capacity or reliance on rented equipment, which could affect scalability.
• Single employee operation suggests potential operational risk if key personnel become unavailable.
• Lack of audit due to micro-entity status reduces external financial scrutiny; while common, this limits transparency for investors.

3. Positive Indicators:

• Robust net current assets of approximately £53,700 vs. current liabilities of £11,100 provide strong short-term liquidity.
• Net assets and shareholders’ funds increased from £35,147 in 2023 to £53,265 in 2024, reflecting retained earnings or capital injection, contributing to solvency.
• Compliance with all filing deadlines (accounts and confirmation statements) indicates good governance discipline.
• The company is active with no signs of liquidation or administrative proceedings.
• The business operates in a defined niche (joinery installation, SIC 43320), which can provide focused operational expertise.

4. Due Diligence Notes:

• Verify the nature of current assets, particularly cash balances and receivables, to ensure liquidity is readily available.
• Investigate the business model's sustainability given the micro scale and reliance on a single director/employee.
• Clarify whether the low fixed assets base is due to leasing or outsourcing critical operational equipment.
• Review contracts or client base to assess revenue stability and growth prospects beyond the reported balance sheet.
• Confirm no undisclosed related party transactions given the sole director and shareholder structure.
• Consider the implications of exemption from audit on financial accuracy and potential undisclosed liabilities.