JOJ DESIGN SOLUTIONS LIMITED

Executive Summary

JOJ Design Solutions Limited is a small engineering services provider with a modest but positive net asset base and limited working capital. Recent financials show a decline in equity and liquidity, warranting cautious credit exposure. Conditional approval is recommended with close cash flow monitoring and restrictions on credit limits until financial stability improves.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

JOJ DESIGN SOLUTIONS LIMITED - Analysis Report

Company Number: SC678855

Analysis Date: 2025-07-29 20:23 UTC

  1. Credit Opinion: CONDITIONAL APPROVAL
    JOJ Design Solutions Limited is a micro private limited company active since 2020 and engaged in engineering activities (SIC 71129). The company shows modest but positive net asset and working capital positions in the latest financial year. However, the significant decline in net current assets and shareholders’ funds from 2022 to 2023 signals weakening financial strength. The absence of employees reduces fixed overhead risk but may limit operational scalability. Given these factors, credit approval is possible but should be conditional on close monitoring of cash flow and profitability trends. Lending should be cautious and possibly limited in size to mitigate credit risk.

  2. Financial Strength:
    The company’s balance sheet as of 31 October 2023 shows fixed assets of £1,990 and current assets of £13,288 against current liabilities of £12,250, resulting in a net current asset position of £1,038. Shareholders’ funds stand at £3,028, down substantially from £6,283 in 2022. This decline reflects a reduction in retained earnings or accumulated losses, indicating a deterioration in equity base. The micro-entity status and modest asset base limit financial resilience. Still, the company maintains positive net assets, avoiding insolvency risk at this stage.

  3. Cash Flow Assessment:
    The small positive net current assets suggest limited but positive working capital. Current liabilities are high relative to current assets, reflecting tight liquidity. The company has no employees, likely keeping operating expenses low. However, the reduced working capital compared to prior years indicates some strain on short-term liquidity. There is no information on cash balances or cash flow statements, so liquidity risk cannot be fully assessed but should be closely monitored. The company’s ability to meet short-term obligations depends on ongoing cash generation from operations or access to external funding.

  4. Monitoring Points:

  • Net current assets and liquidity trends in subsequent filings
  • Profitability and retained earnings movements to assess financial trajectory
  • Director reports or management commentary for operational outlook
  • Any changes in creditor terms or increases in short-term borrowings
  • Filing of next annual accounts and confirmation statements on time
  • External economic factors impacting the engineering sector and client base

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