Company Number: 14519573

Analysis Date: 2025-07-29 15:52 UTC

1. Risk Rating: LOW
   Jomac Services Limited exhibits solid financial health with consistent profitability, positive net current assets, and no overdue filings. The company shows strong working capital and equity growth within a short operating period, indicating low solvency and liquidity risk.

2. Key Concerns:

• Reliance on a Single Director and Shareholder: The company is wholly owned and controlled by one individual, which may present governance and succession risks.
• Hire Purchase Creditors: Introduction of hire purchase liabilities (£5,000 total) requires monitoring to ensure debt servicing is maintained without strain.
• Deferred Tax Provision: An increasing deferred tax liability (£7,700) should be reviewed for potential future cash flow impact.

3. Positive Indicators:

• Profitability and Growth: Turnover increased from £200k to £638k with operating profit rising from £64k to £107k year on year.
• Strong Liquidity: Net current assets of £107,618 and cash balance over £64k support operational stability.
• Compliance: All statutory accounts and confirmation statements are filed on time with no overdue returns.
• Small Company Reporting: The company benefits from simplified reporting, reducing administrative burden.

4. Due Diligence Notes:

• Verify the terms and repayment schedule of hire purchase agreements to assess impact on future cash flows.
• Assess the director’s plans for business continuity given sole ownership and control.
• Review debtor aging and credit risk, given trade debtors have increased substantially in line with turnover.
• Confirm no contingent liabilities or off-balance sheet risks exist beyond deferred tax provisions.
• Evaluate the company’s insurance and compliance with industry regulations relating to plumbing and air conditioning installation.