JORGKIND LIMITED

Executive Summary

Jorgkind Limited demonstrates significant solvency and liquidity risks primarily due to very high creditor balances relative to modest equity and cash resources. However, the company holds valuable investment property assets and maintains regulatory compliance with timely filings. Further detailed review of debt terms and operational cash flows is essential to fully assess financial sustainability.

JORGKIND LIMITED - Analysis Report

Company Number: 13639163

Analysis Date: 2025-07-29 13:40 UTC

1. Risk Rating: HIGH
   The company exhibits a high solvency risk due to the disproportionate level of current liabilities relative to current assets and a very large long-term creditor balance. Despite positive net current assets reported, the overall financial structure shows a significant creditor burden far exceeding equity and cash resources.

2. Key Concerns:

• Excessive Long-Term Creditors: Non-current liabilities are approximately £2.98 million against net assets of only £32,271, indicating heavy reliance on debt financing with limited equity buffer.
• Liquidity Mismatch: While cash of nearly £496k is substantial, current liabilities are reported at £2.98 million, which suggests potential timing or classification issues needing clarity but also points to liquidity strain.
• Low Equity and Thin Profitability: Shareholders' funds have only just turned positive from a negative £110k in the prior year, reflecting minimal retained earnings and possibly thin operating margins or insufficient profitability.

3. Positive Indicators:

• Stable Investment Property Valuation: Fixed assets in investment property remain steady at £2.65 million, providing a tangible asset base and potential for rental income.
• No Overdue Filings: The company complies with Companies House filing deadlines for accounts and confirmation statements, indicating good regulatory compliance.
• Experienced Directors: The presence of three directors with defined roles and no adverse records suggests stable governance.

4. Due Diligence Notes:

• Review the nature and terms of the £2.98 million long-term creditors to assess repayment schedules, interest rates, and covenants.
• Clarify the classification of current liabilities since the notes disclose only £142k current creditors but the financial summary shows £2.98 million current liabilities, indicating possible reporting inconsistencies.
• Examine the company's cash flow statements and income statement (not included) to evaluate operational cash generation and profitability trends.
• Confirm the rental income reliability and occupancy rates of the investment properties to assess sustainability of asset-backed earnings.
• Investigate any contingent liabilities or off-balance-sheet obligations that may affect financial stability.