Company Number: 13821053

Analysis Date: 2025-07-20 14:59 UTC

1. Credit Opinion: APPROVE with conditions.
   JPK Financial Limited is a micro private limited company operating in insurance brokerage since December 2021. The company shows a strong turnaround in its latest financial year ending 31 December 2023, moving from negative net assets of £525 in 2022 to positive net assets of £95,436 in 2023. However, the company carries long-term liabilities (£121,119) that require monitoring. The director is the sole significant controller, indicating concentrated management but also clear accountability. Approval is recommended subject to ongoing monitoring of debt servicing and cash flow stability due to the company’s relatively short trading history and modest scale.

2. Financial Strength:
   The balance sheet reflects improved financial health. Fixed assets increased to £136,081, with current assets rising sharply to £98,484 from £775 the prior year. Net current assets stand at £81,574, indicating sufficient short-term liquidity to cover current liabilities (£16,910). However, the company has long-term creditors of £121,119, which somewhat offsets total assets less current liabilities (£217,655), resulting in net assets of £95,436. The positive shareholder funds reflect retained earnings and capital injections. Overall, the company moved from negative equity to a moderate equity base in one year, suggesting improving financial strength.

3. Cash Flow Assessment:
   The company’s current asset to current liability ratio exceeds 5:1, which is healthy and suggests good short-term liquidity. The net current assets position supports working capital requirements. However, the presence of long-term liabilities (£121,119) implies future cash outflows that must be managed carefully. The company’s small size and limited employee base (average 2 employees in 2023) suggest a lean cost structure, which should aid cash flow stability. No profit and loss information is provided, so cash flow from operations cannot be fully assessed; thus, ongoing review of cash flow statements is essential.

4. Monitoring Points:

• Monitor long-term creditor obligations and repayment schedules to ensure no liquidity strain.
• Review future accounts for profitability and cash flow statements to confirm operating cash generation.
• Watch for any changes in director or ownership structure that may affect governance or risk profile.
• Track any overdue filings or compliance to avoid penalties or reputational risk.
• Given the company’s micro status and recent formation, monitor growth trends and market conditions in the insurance brokerage sector.