JR SPORTS MASSAGE LIMITED

Executive Summary

JR SPORTS MASSAGE LIMITED demonstrates a stable but modest financial position with positive net current assets and shareholder equity, albeit showing a decline in net assets over the last year. Given its micro-entity status and limited operational scale, the company can currently service short-term obligations but requires close monitoring of liquidity and working capital trends. Conditional credit approval is recommended, subject to ongoing review of financial performance and cash flow stability.

JR SPORTS MASSAGE LIMITED - Analysis Report

Company Number: 13804316

Analysis Date: 2025-07-29 19:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JR SPORTS MASSAGE LIMITED is a micro-entity operating in physical well-being activities, with a short trading history since incorporation in late 2021. The company shows positive net current assets and net assets, indicating a positive working capital position and modest balance sheet strength. However, the declining net assets from £14,115 in 2022 to £7,316 in 2023, combined with zero employees and limited asset base, suggests cautious monitoring is warranted. The company’s ability to service debt appears adequate at present but is limited by its small scale and lack of operational breadth. Approval is conditional on continued maintenance of liquidity and no significant increase in liabilities.

2. Financial Strength:
   The company’s balance sheet reveals total net assets of £7,316 as of 31 December 2023, down from £14,115 the previous year, reflecting a reduction in current assets from £19,563 to £13,954 and an increase in current liabilities from £5,448 to £6,638. The company holds no fixed assets and operates solely through current assets, primarily cash or receivables. This limited asset base restricts collateral availability. Shareholders’ funds mirror net assets, with sole control by the director James Daniel Robinson, indicating concentrated ownership but potentially limited external equity support.

3. Cash Flow Assessment:
   Net current assets remain positive at £7,316, pointing to a reasonable short-term liquidity position. However, the reduction in current assets and an increase in current liabilities year-over-year may hint at tightening working capital. The absence of employees suggests minimal payroll commitments but also implies limited operational scale and cash inflows. The micro-entity accounts do not disclose profit and loss details, so cash flow from operations cannot be fully assessed. Overall liquidity appears sufficient for small-scale obligations but could be vulnerable if business volumes fluctuate.

4. Monitoring Points:

• Track net current assets and working capital trends to ensure liquidity remains positive.
• Monitor accounts receivable aging and creditor payment terms to detect cash flow stress.
• Observe any increase in liabilities or capital expenditure that could strain cash resources.
• Review annual accounts timely to assess profitability and cash flow generation capacity.
• Watch for any changes in ownership or director conduct that might affect governance and financial stewardship.