JOURNALISE LTD

Executive Summary

Journalise Ltd is a micro-entity with ongoing negative net assets and net current liabilities, indicating poor financial health and limited ability to meet short-term obligations. The company’s small scale and lack of financial improvement present elevated credit risk. Credit facilities are not recommended at this stage without material strengthening of the balance sheet or cash flow.

JOURNALISE LTD - Analysis Report

Company Number: 14473954

Analysis Date: 2025-07-20 13:41 UTC

1. Credit Opinion: DECLINE Journalise Ltd’s financial position reveals persistent net current liabilities and negative net assets over the last two years, indicating ongoing funding deficits and erosion of equity. The company’s inability to generate positive working capital raises concerns about its capacity to meet short-term obligations and service credit facilities. The absence of employees besides the director and micro-entity scale reflect a very small operation with limited operational scale and financial resilience. Given the negative net worth, absence of profitability data, and no signs of financial improvement, extending credit would expose the bank to elevated risk without adequate mitigation.

2. Financial Strength: The balance sheet shows net current liabilities of £18,910 at November 2024, worsening from £15,346 the prior year. Total assets less current liabilities are negative and shareholders’ funds are also negative by the same amount, evidencing accumulated losses or shareholder loans not being converted to equity. Current assets are low (£13k) and mainly represent cash or receivables, while current liabilities (£32k) likely include trade creditors or short-term borrowings. The company is undercapitalized with no tangible fixed assets reported, limiting financial flexibility.

3. Cash Flow Assessment: Current liabilities consistently exceed current assets, resulting in negative working capital which suggests liquidity strain. Without a positive net current asset position, the company may struggle to fund day-to-day operations without external injections or credit. The micro size and lack of employees suggest minimal operational cash flow generation capacity. No information on cash flow from operations or profitability is provided, but persistent net liabilities imply cash flow deficits or reliance on shareholder funding.

4. Monitoring Points:

• Track upcoming filings for any changes in financial position or introduction of fixed assets.
• Monitor for improvements in net current assets and net asset position.
• Watch for director or shareholder liquidity support or capital injections.
• Review any changes in business activity or scale that might enhance cash flow.
• Observe any overdue filings or changes in company status indicating distress.