JOLLY GOOD PRODUCTION LIMITED

Executive Summary

JOLLY GOOD PRODUCTION LIMITED demonstrates a recent turnaround from significant financial distress, improving net assets from negative to a small positive position by mid-2024. Despite this improvement, the company’s liquidity remains tight with minimal cash and current assets, and no reported employees, raising concerns about operational sustainability. Compliance with filing requirements is up to date, but careful due diligence on cash flows, creditor arrangements, and business operations is recommended before considering investment.

JOLLY GOOD PRODUCTION LIMITED - Analysis Report

Company Number: 13442210

Analysis Date: 2025-07-29 18:13 UTC

1. Risk Rating: HIGH
   The company shows significant financial distress as evidenced by the prior year's large negative net assets and current liabilities exceeding current assets substantially. Although the latest year shows improvement, the absolute asset and cash levels remain very low, indicating potential solvency and liquidity risks.

2. Key Concerns:

• Volatile and Negative Net Asset Position: The company had a net liability of £114,678 at the last two year ends (2022 and 2023), indicating past insolvency. Although net assets improved to £11,132 by June 2024, this is still a marginal positive figure that could quickly reverse.
• Liquidity Constraints: Cash on hand is £595 for 2024, down significantly from £10,827 in 2023. Current assets are minimal (£3,804), and although current liabilities have decreased to £8,228, this still represents a liquidity strain.
• No Employees and Small Scale: The company reported zero employees during the latest year, which could imply limited operational capacity or outsourcing, potentially impacting sustainable operations and growth.

3. Positive Indicators:

• Recent Improvement in Financial Position: The net asset position has improved dramatically from large negative balances to a small positive figure, indicating some recovery or restructuring efforts.
• Timely Filing Compliance: The company is current on filings with no overdue accounts or confirmation statements, which suggests good regulatory compliance and governance discipline.
• Clear Control Structure: The presence of identified persons with significant control and active directors suggests transparency and accountability in management.

4. Due Diligence Notes:

• Investigate the reasons behind the large prior year losses and negative net assets and the specific actions taken to improve the financial position in 2024.
• Review cash flow statements and creditor arrangements to assess ongoing liquidity and working capital management.
• Understand the operational model given no employees are reported — whether services are contracted out or the company is dormant operationally.
• Examine any contingent liabilities or off-balance sheet obligations that may not be apparent in the accounts.
• Confirm the nature and terms of related party transactions, especially director loans and creditor balances.