JONVIC (UK) LTD.
Company number 05609285 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Investment Risk Analysis: JONVIC (UK) LTD. (05609285)
1. Risk Rating: HIGH
The company presents significant solvency and liquidity concerns. Net assets have collapsed from £40,949 to £3,050 in a single year (a 92.6% decline), while cash reserves have fallen from £39,606 to £4,409. The company now carries net current liabilities of £7,581, meaning it cannot meet short-term obligations from current assets. The equity buffer is perilously thin at just £3,050 against total liabilities approaching £24,552.
2. Key Concerns
Concern 1: Severe Liquidity Deterioration
Current assets (£4,409 cash only) are insufficient to cover current liabilities (£11,990), yielding a current ratio of approximately 0.37:1. This is critically below the 1:1 threshold typically required for operational sustainability. The absence of trade debtors or other liquid assets leaves no margin for error.
Concern 2: Dramatic Erosion of Net Assets
Shareholders' funds fell from £40,947 to £3,048 in the P&L reserve, representing either substantial trading losses or significant distributions. Given the cash decline and lack of revenue data (profit and loss account not delivered to Registrar), the trajectory raises serious questions about whether the company is generating sufficient income to cover its obligations.
Concern 3: Bounce Back Loan Obligations
The company holds a £40,000 Bounce Back Loan (BBL), with £4,441 due within one year and £12,562 due after one year, totaling £17,003 outstanding. With only £4,409 in cash and net current liabilities, servicing this debt alongside other creditor obligations presents a material risk. The BBL is fully government-backed, meaning personal liability does not attach to directors, but the debt burden on the company remains significant relative to its asset base.
3. Positive Indicators
- Long Operating History: Incorporated in 2005, the company has survived nearly 20 years, suggesting some operational resilience.
- Filing Compliance: Accounts and confirmation statements are current and not overdue, indicating adequate administrative governance.
- Director Financial Support: Loans from directors increased from £4,775 to £6,989, suggesting the director is willing to provide personal funding to sustain operations.
- BBL Repayment Progress: The long-term portion of the BBL has reduced from £16,340 to £12,562, indicating regular repayment is occurring.
- Fixed Asset Base: Tangible assets of £17,068 and investments of £6,125 provide some underlying value beyond cash.
4. Due Diligence Notes
| Item | Investigation Required |
|---|---|
| P&L Reserve Decline | The £37,899 drop in retained earnings requires explanation. Was this trading losses, dividend distributions, or asset write-downs? The profit and loss account was not delivered to the Registrar, so this cannot be determined from available filings. |
| Cash Outflow | Cash fell by £35,197 year-on-year. Understanding where this cash went (operating losses, capital expenditure, director repayments, or other) is critical to assessing ongoing viability. |
| Revenue & Trading Performance | As a small company filing filleted accounts, turnover and profit/loss figures are not publicly available. Direct inquiry with management is necessary to understand whether the business is generating revenue. |
| Investments (£6,125) | The nature of these investments is unclear. If readily realisable, they could provide additional liquidity. If illiquid or impaired, they may not offer meaningful support. |
| Director Loan Terms | The terms of the £6,989 director loan (interest rate, repayment schedule, subordination) should be established to understand cash flow commitments. |
| Controlling Shareholder Concentration | Mr Kaye Kuye holds >75% of shares and voting rights with the right to appoint/remove directors. This concentrated control creates key-person dependency and minority shareholder risk if applicable. |
| Related Party Transactions | Beyond the disclosed director loan, other related-party transactions may exist that are not visible in filleted accounts. |
| Future Cash Flow Projections | Given the current ratio below 1, understanding projected cash inflows and outflows is essential to determine whether the company can continue as a going concern. |
| Nature of Business Activity | The four SIC codes span IT services, financial intermediation support, management consultancy, and other professional activities. Clarification on which activities generate revenue and their sustainability would inform operational risk assessment. |