JOT ASSET MANAGEMENT LIMITED

Executive Summary

Jot Asset Management Limited shows a solid equity base supported by investment property but currently has marginal working capital and limited operational assets. The company’s liquidity position is adequate for its early stage but requires careful management of tax liabilities and cash flow. Approval is recommended with conditions to monitor ongoing financial performance and liquidity closely.

JOT ASSET MANAGEMENT LIMITED - Analysis Report

Company Number: 14721791

Analysis Date: 2025-07-20 13:03 UTC

1. Credit Opinion: APPROVE with conditions
   Jot Asset Management Limited is a newly incorporated private limited company (March 2023) operating in the management consultancy sector (SIC 70229). The company has filed its first set of accounts to 31 March 2024, showing modest activity but a structurally positive balance sheet. The shareholder, Mr Damien Michael Heenan, holds full ownership and control, which may simplify decision-making but concentrates risk. Approval is recommended subject to ongoing monitoring of cash flow and receivables collections given the current marginal working capital position and the company’s nascent trading history.

2. Financial Strength:

• Total assets less current liabilities stand at £181,069, largely driven by a significant investment property asset (£181,365).
• Net assets (shareholders’ funds) are £147,501, reflecting initial equity injection plus retained earnings (profit and loss reserve of £147,401).
• Current liabilities of £66,917 slightly exceed current assets of £66,621, resulting in a small negative net working capital of £296.
• Long-term accruals/creditors of £33,568 reduce net assets but do not represent immediate cash demands.
• No tangible fixed assets remain after depreciation, indicating limited operating equipment or plant investment.
  Overall, the balance sheet shows reasonable equity backing with an asset base skewed towards property rather than operating assets, which may imply limited operational scale but potential collateral value.

3. Cash Flow Assessment:

• Cash on hand at year-end is £49,189, representing the majority of current assets and providing some liquidity buffer.
• Debtors are £17,432, primarily VAT recoverable, which should be collectible in due course but may delay cash conversion.
• Current liabilities are almost entirely trade creditors and tax obligations (£66,917), including significant taxes and social security payments of £51,699, which need to be managed carefully to avoid liquidity strain.
• The company’s negative net working capital position is marginal but warrants attention, particularly as the business scales.
• No audit was required, and the profit and loss account was not filed, limiting insight into operational cash generation.
  Liquidity is currently adequate but requires close monitoring, especially given the new business status and tax commitments.

4. Monitoring Points:

• Track liquidity trends and cash flow statements in subsequent filings to ensure working capital remains positive or manageable.
• Monitor tax and social security liabilities closely to avoid payment defaults or penalties.
• Review debtor collection efficiency and any increase in trade creditors that could signal payment delays or supplier issues.
• Observe changes in asset composition, particularly property holdings versus operational assets.
• Assess profitability and retained earnings growth once profit and loss accounts are filed to confirm operational viability.
• Monitor director and shareholder conduct and any changes in control or governance that might affect financial stewardship.