JOSHUA JAMES LTD

Executive Summary

Joshua James Ltd demonstrates a positive net asset and cash position with clear ownership and no overdue filings, supporting a medium risk rating. However, the sharp rise in current liabilities, especially tax liabilities, alongside a limited audited track record, flags liquidity and operational risks that warrant further examination. Overall, the company appears solvent but requires careful monitoring of cash flow and creditor obligations to ensure ongoing stability.

JOSHUA JAMES LTD - Analysis Report

Company Number: 13125533

Analysis Date: 2025-07-20 11:16 UTC

1. Risk Rating: MEDIUM
   The company shows significant improvement in net assets and working capital over the last financial year, which is positive. However, the large increase in current liabilities, particularly tax and other creditors, relative to cash and debtors, raises liquidity concerns. The absence of an audit and limited historical data (incorporated in 2021) also limits the ability to fully assess financial and operational stability.

2. Key Concerns:

• Liquidity Pressure: Current liabilities at £236k are substantial compared to £325k cash and £58k debtors. High corporation tax (£68k) and other creditors (£107k) contribute to this, which could strain short-term cash flow.
• Rapid Growth Risks: A sharp increase in current liabilities and net assets from 2023 to 2024 indicates rapid business scaling, which, if unmanaged, could lead to operational or financial difficulties.
• Limited Financial History & Audit Absence: Being a relatively new company with unaudited accounts reduces transparency and increases risk in assessing financial health and compliance rigor.

3. Positive Indicators:

• Strong Cash Position: Cash of nearly £325k against current liabilities of £236k provides buffer for immediate obligations.
• Positive Net Current Assets and Equity: Net current assets of £146k and shareholders’ funds of £163k indicate that the company’s assets exceed its short-term liabilities.
• Timely Filings and Active Status: No overdue accounts or confirmation statements, indicating good compliance with statutory filing requirements.
• Clear Ownership and Control: Two directors with equal shareholding and voting rights provide clear governance structure.

4. Due Diligence Notes:

• Verify the nature and due dates of significant creditors, especially corporation tax and other creditors, to assess risk of default or payment delay.
• Review cash flow statements and forecasts to confirm that liquidity is sustainable given the current liabilities profile.
• Investigate reasons behind the rapid increase in liabilities and assets between 2023 and 2024, including any credit terms or supplier arrangements.
• Confirm that the company’s accounting policies and internal controls are robust despite exemption from audit.
• Assess the operational capacity and contracts underpinning turnover and receivables to judge business sustainability.