J&S CONSULTANCY SERVICES LTD

Executive Summary

J&S CONSULTANCY SERVICES LTD demonstrates regulatory compliance and operational stability with a stable employee base and clear directorship. However, its extremely low net asset base and volatile working capital position expose it to medium solvency and liquidity risks. Further investigation into asset quality and cash flow management is advised to clarify financial resilience.

J&S CONSULTANCY SERVICES LTD - Analysis Report

Company Number: 13547949

Analysis Date: 2025-07-29 19:16 UTC

1. Risk Rating: MEDIUM
   The company shows a very low net asset base (£2 as of 2024) and fluctuating working capital positions, including a significant negative net current assets figure in 2021. While it remains active and compliant with filings, these financials suggest limited financial buffer and potential short-term liquidity risks.

2. Key Concerns:

• Thin equity and net asset base: Shareholders’ funds are minimal (£2), indicating very limited capital to absorb losses or support growth.
• Volatile working capital: Net current assets swung from a negative £13,953 in 2021 to a positive £176 in 2023 but then sharply negative again (-£26,320) in 2024, reflecting potential cash flow instability.
• Significant current liabilities relative to current assets: Current liabilities (£49,249 in 2024) substantially exceed current assets (£22,929), raising concerns about the company’s ability to meet short-term obligations without additional financing.

3. Positive Indicators:

• Timely compliance: No overdue accounts or confirmation statements detected, indicating good regulatory compliance and governance.
• Stable employee base: Consistent average employee count (2) suggests operational continuity and potentially manageable overheads.
• Active directors with clear control: Two directors each owning 25-50% shares, providing clear leadership and accountability.

4. Due Diligence Notes:

• Review detailed working capital components and creditor aging to assess liquidity management and creditor payment practices.
• Investigate the nature and valuation of fixed assets, particularly the jump from a negative to a substantial positive figure (£26,496 in 2024), to understand asset quality and potential impairments.
• Examine cash flow statements and bank reconciliations to evaluate cash availability and forecast future liquidity.
• Confirm absence of director conduct issues or disqualifications given the importance of management stability.
• Assess the business model and revenue streams under SIC 96090 (“Other service activities not elsewhere classified”) to understand sustainability and market position.