JON&SAM SCAFFOLDING LTD

Executive Summary

JON&SAM SCAFFOLDING LTD, a recently incorporated scaffolding company, demonstrates significant solvency and liquidity challenges as reflected by negative net assets and working capital deficits in its first financial year. While it maintains compliance with filing requirements and has an active online presence, the limited financial history and financial position warrant cautious monitoring and further due diligence on cash flow management and operational sustainability before considering investment.

JON&SAM SCAFFOLDING LTD - Analysis Report

Company Number: 14811641

Analysis Date: 2025-07-29 13:56 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as indicated by net liabilities of £10,480 within its first financial period. Current liabilities exceed current assets by £25,105, reflecting negative working capital and liquidity stress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has net liabilities, meaning total liabilities exceed total assets, which is a critical financial red flag.
• Poor Liquidity Position: Current liabilities (£29,074) vastly exceed current assets (£3,969), indicating potential difficulties in meeting short-term obligations.
• Early Stage with Limited Financial History: Incorporated in April 2023, the company has limited operational track record to assess sustainability or financial improvement trajectory.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, showing regulatory compliance at this early stage.
• Active Website and Contact Availability: An active website with clear contact information suggests operational intent and some degree of market presence.
• Directors’ Engagement: Both directors are actively appointed since incorporation with no reported disqualifications, indicating no immediate governance concerns.

4. Due Diligence Notes:

• Examine Cash Flow and Financing Plans: Investigate how the company intends to manage its negative working capital and net liabilities, including any planned equity injections or credit facilities.
• Assess Revenue and Profitability Trends: Review turnover and profit and loss details (not fully disclosed) to understand operational viability and growth prospects.
• Confirm Directors’ Background and Related Party Transactions: Verify the directors’ experience in scaffolding or related sectors and check for any loans or guarantees they may have provided.
• Evaluate Contractual Backlog and Client Base: Understanding existing contracts will provide insight into future cash inflows and operational stability.