Company Number: 14121169

Analysis Date: 2025-07-29 18:26 UTC

1. Credit Opinion: DECLINE
   JPJ SUPPLIES LTD exhibits a weak financial profile with persistent negative net current assets and net liabilities of £3,846 as at 31 May 2024. The company’s balance sheet shows no fixed or current assets to cover current liabilities (£3,847), indicating a lack of liquidity and financial cushion. Despite being a very small operation (micro entity, one employee), the company’s inability to generate positive working capital or assets raises significant concerns about its capacity to service debt or honour trade credit reliably. The company is very young (incorporated in 2022) and shows no evidence of financial improvement or growth trajectory based on the latest filings.

2. Financial Strength:
   The balance sheet is highly fragile. There are zero reported fixed or current assets, and the current liabilities remain consistent at £3,847. The company’s net assets and shareholders’ funds are negative (-£3,846), highlighting an insolvency position on a balance sheet basis. This suggests the company is either relying on external financing not captured in these statements or is operating at a loss without tangible resources or reserves. Such a financial position is risky for any creditor.

3. Cash Flow Assessment:
   The absence of reported cash or other current assets indicates extremely limited liquidity. The prior year showed a minimal £108 in cash but this has vanished. With current liabilities exceeding assets, the company likely struggles with short-term cash flow management. One employee and micro entity status imply a minimal operational footprint; however, this does not offset the evident cash constraints. Without visible cash flow or working capital, the company’s ability to meet short-term obligations is questionable.

4. Monitoring Points:

• Monitor updated financial statements for any improvement in net current assets and liquidity.
• Watch for any changes in trade creditors or late payments indicating cash flow stress.
• Track company filings to ensure timely submission and check for any signs of financial distress or restructuring.
• Observe any new borrowing or capital injections that might improve the balance sheet.