JOSH OWEN TREE AND GARDEN SERVICES LTD

Executive Summary

Josh Owen Tree and Garden Services Ltd is a start-up private company with a working capital shortfall but positive net assets largely backed by fixed assets. While regulatory compliance is current and accounting transparent, liquidity pressures and concentrated ownership pose moderate risk. Further scrutiny of liabilities and cash flow is advised to confirm operational sustainability.

JOSH OWEN TREE AND GARDEN SERVICES LTD - Analysis Report

Company Number: 15258750

Analysis Date: 2025-07-29 16:09 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (Nov 2023) and reports net current liabilities of £14,349 against current liabilities of £59,772, indicating short-term liquidity pressure. However, positive net assets of £53,833 due to fixed assets provide some cushion. The single director/owner structure and absence of audit are common for small startups but increase governance risk.

2. Key Concerns:

• Liquidity Deficit: Current liabilities exceed current assets, indicating potential cash flow stress in meeting obligations within 12 months.
• High Fixed Asset Investment: £80,214 gross tangible assets with depreciation of £12,032 suggests significant capital expenditure in the first year, potentially straining cash resources.
• Single Person Control: The sole director and 75-100% shareholder concentration may limit oversight and raise governance concerns for investors.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed timely, demonstrating regulatory compliance.
• Positive Net Assets: Despite working capital deficit, net assets are positive at £53,833, reflecting investment in fixed assets and some retained earnings.
• Clear Accounting Policies: The company applies FRS 102 and small company regime, with transparent notes on asset depreciation and turnover recognition.

4. Due Diligence Notes:

• Investigate the nature of current liabilities (£59,772), especially the large "other creditors" component (£51,930) and whether these are trade payables or related party loans.
• Review cash flow projections and working capital management plans to assess how the company intends to cover short-term obligations.
• Assess the sustainability of business operations given only 1 employee and the capital assets base, including turnover and contract backlog.
• Verify the absence of director disqualifications and review governance practices given single director/owner control.