Company Number: 13103907

Analysis Date: 2025-07-20 13:29 UTC

1. Credit Opinion: DECLINE
   JS Auto Blaster Ltd demonstrates significant financial distress as evidenced by negative net current assets and net liabilities worsening from £4,853 in 2022 to £10,266 in 2023. The company’s inability to meet short-term liabilities (current liabilities £9,106 exceeding current assets £2,274) raises material doubts about its capacity to service additional debt. Despite the directors’ statement on going concern, the financial trajectory suggests deteriorating creditworthiness and elevated risk. Approval of credit facilities is not recommended without substantial evidence of turnaround or capital injection.

2. Financial Strength:
   The balance sheet shows a weakening position. Fixed assets have increased marginally from £500 to £4,789, but current assets have sharply declined from £10,683 in 2022 to £2,274 in 2023. Concurrently, current liabilities increased to £9,106 and there is significant long-term creditor debt (£7,113). The net liabilities position worsened, indicating erosion of shareholder equity and an insolvent balance sheet basis. The company is categorized as micro, with minimal share capital (£100), limiting financial buffer.

3. Cash Flow Assessment:
   The net current liabilities of £6,832 indicate a working capital deficiency, impairing liquidity and the ability to meet immediate obligations. The sharp fall in current assets, possibly cash or receivables, suggests cash flow stress. With only one employee and limited turnover implied by micro entity status, operational cash generation appears insufficient to cover creditor demands. Without additional cash injections or restructuring, liquidity risks are high.

4. Monitoring Points:

• Monitor quarterly cash flow and bank balances to detect worsening liquidity.
• Track changes in trade creditors and short-term borrowing levels.
• Review any capital injections or shareholder loans to strengthen equity.
• Observe management actions to improve receivables collection or cost controls.
• Watch for any late filings or signs of insolvency proceedings.