JRM MOBILE-TECH LTD

Executive Summary

JRM MOBILE-TECH LTD exhibits high financial risk due to persistent negative net assets and insufficient liquidity despite timely compliance filings. The company shows some asset growth but faces solvency challenges and increased long-term liabilities within its first two years. Further analysis of debt terms and operational cash flows is essential to evaluate business sustainability and recovery prospects.

JRM MOBILE-TECH LTD - Analysis Report

Company Number: 14723565

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: HIGH
   The company’s financials reveal persistent net liabilities and negative net current assets, indicating significant solvency and liquidity risks within a short operating history.

2. Key Concerns:

• Solvency Issues: The balance sheet shows negative net assets of £11,367 as of 31 March 2025, worsening from a negative £6,726 the previous year, suggesting ongoing losses and erosion of shareholder equity.
• Liquidity Constraints: Current liabilities (£25,245) exceed current assets (£9,204), producing a negative net current asset position of £15,241, which signals potential difficulties in meeting short-term obligations.
• Increasing Long-Term Creditors: Creditors due after one year have risen substantially to £14,544 from £4,743, increasing leverage and potential refinancing risks.

3. Positive Indicators:

• Growth in Fixed Assets: Fixed assets nearly doubled from £9,375 to £18,417, which could imply investment in operational capacity or equipment.
• Stable Workforce: The company maintains a consistent small staff of 2 employees, which aligns with its micro-entity status and may help control operating expenses.
• No Filing Delinquencies: All statutory accounts and confirmation statements are filed on time, indicating good compliance and governance practices.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant long-term creditors to assess refinancing risk and debt servicing capacity.
• Review cash flow statements and profit & loss accounts (not provided) to understand operational cash generation and loss drivers.
• Confirm the sustainability of the business model given ongoing negative equity and working capital deficits, especially in a competitive motor vehicle parts retail and repair sector.
• Assess the director’s plans to restore financial health and whether additional capital injections or restructuring is anticipated.