JPB RISK SOLUTIONS LIMITED

Executive Summary

JPB Risk Solutions Limited shows a marked financial recovery with net assets turning positive in the latest year and improved cash balances. However, negative working capital and reliance on director loans highlight liquidity risks. Conditional credit approval is recommended with close monitoring of cash flow and short-term liabilities.

JPB RISK SOLUTIONS LIMITED - Analysis Report

Company Number: 13128903

Analysis Date: 2025-07-20 18:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JPB Risk Solutions Limited demonstrates improving financial health with a turnaround from significant net liabilities to positive net assets in the latest year. However, current liabilities still exceed current assets, indicating working capital pressure. The director’s loan account remains a significant creditor, which may limit external creditor risk but also suggests dependence on director funding. Approval is recommended with conditions to monitor liquidity closely and ensure ongoing operational cash flow supports debt servicing.

2. Financial Strength:
   The company’s net assets improved from a negative £8,834 in 2023 to a positive £1,728 in 2024, reflecting a recovery likely driven by asset investment and retained earnings improvement. Fixed assets increased substantially to £5,143, showing capital investment in motor vehicles, fixtures, and computer equipment. Share capital is minimal (£1), indicating low shareholder equity. The balance sheet remains fragile due to negative net current assets (£-3,415), meaning liabilities due within one year exceed liquid assets.

3. Cash Flow Assessment:
   Cash at bank increased to £6,743 from £1,595, improving liquidity. However, current liabilities at £10,158, including a £7,828 director’s loan, exceed current assets. The company has no reported trade creditors, which reduces immediate payment pressure. The reliance on director loans suggests cash inflows are supported internally rather than from external commercial sources. Working capital is negative, which could impair the ability to meet short-term obligations without continued director support or improved cash generation from operations.

4. Monitoring Points:

• Liquidity ratios, especially current ratio and quick ratio, to detect any worsening in working capital.
• Director’s loan account balance to assess dependency on shareholder funding and potential repayment terms.
• Profitability trends in future accounts to confirm sustained recovery and ability to generate positive cash flows.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Any increase in trade creditors or external short-term borrowings that could strain liquidity.