JOURNEY ENERGY SOLUTIONS LIMITED

Executive Summary

Journey Energy Solutions Limited has demonstrated a positive turnaround in its financial position in 2024, moving from negative equity and net current liabilities to modestly positive working capital and shareholders’ funds. However, low cash reserves and reliance on trade debtors present liquidity risks that require ongoing monitoring. Credit approval is recommended on a conditional basis, emphasizing close oversight of cash flow and receivables management.

JOURNEY ENERGY SOLUTIONS LIMITED - Analysis Report

Company Number: 12727874

Analysis Date: 2025-07-20 13:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Journey Energy Solutions Limited shows a recent turnaround in financial health after several years of net current liabilities and negative shareholders’ funds. The 2024 accounts indicate positive net current assets (£12,217) and positive equity (£12,217), reflecting improved liquidity and solvency. However, the company remains small with limited cash reserves (£1,786) and modest working capital. The credit approval should be conditional on monitoring cash flow closely, ensuring timely receivables collection, and no significant increase in short-term liabilities. The absence of an audit and limited historical profitability data warrants caution.

2. Financial Strength:
   The balance sheet reveals a significant recovery from prior years where net current liabilities exceeded £21K and shareholders’ funds were negative (£-36,947 in 2023). The company currently holds modest equity (£12,217) and low share capital (£150) with a share premium of £14,850. Current assets are primarily debtors (£50,162) with very limited cash on hand (£1,786), indicating potential liquidity risk if receivables are delayed. The company has reduced its creditor balance substantially from £187,249 to £39,731 in 2024, which is positive. Overall, the financial strength is fragile but improving.

3. Cash Flow Assessment:
   Cash at bank dropped sharply from £128,810 in 2023 to £1,786 in 2024, suggesting cash burn or significant outflows to reduce liabilities. Dependence on receivables for working capital is high, with debtors making up the bulk of current assets. Net current assets are positive, but the low cash balance indicates limited buffer for unexpected expenses or delayed payments. The company should prioritize improving cash conversion cycles and maintain strict debtor control to avoid liquidity shortfalls.

4. Monitoring Points:

• Receivables aging and collection efficiency to avoid cash flow disruption.
• Trends in short-term liabilities to prevent recurrence of previous liquidity strain.
• Profitability and retained earnings trajectory in future filings to assess sustainability.
• Any changes in director appointments or ownership that may affect governance or control.
• Compliance with filing deadlines and potential need for audited accounts if growth or risk profile changes.