J&S CONTRACTORS LIMITED

Executive Summary

J&S Contractors Limited is a very small, recently incorporated construction business with limited financial resources but currently adequate liquidity to meet short-term debts. The company’s micro-entity status and minimal asset base restrict its financial resilience, warranting credit approval only on a conditional basis with prudent limits and ongoing monitoring. Continued focus on cash flow management and equity preservation will be essential to maintaining creditworthiness.

J&S CONTRACTORS LIMITED - Analysis Report

Company Number: 13952386

Analysis Date: 2025-07-20 11:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   J&S Contractors Limited is a very small, micro-entity construction business with a limited financial footprint. The company shows positive net current assets and net assets, indicating it can meet short-term obligations. However, the minimal scale of operations and low asset base suggest limited financial resilience. Approval for credit facilities could be considered with conditions such as modest credit limits and close monitoring, given the company's infancy and small scale.

2. Financial Strength:
   The company’s balance sheet reflects very low asset and equity values (£172 net assets as of 31 March 2024), with current assets slightly exceeding current liabilities, producing a small working capital surplus (£72). The share capital is nominal (£100 called up). There is no indication of fixed assets, implying reliance on current assets only. The net assets declined from £284 in 2023 to £172 in 2024, signaling a mild erosion of equity but no immediate distress. Overall, the financial strength is weak but stable within its micro category.

3. Cash Flow Assessment:
   Current assets of £1,715 are mainly cash or receivables, covering current liabilities of £1,643, which suggests the company can meet short-term obligations. However, the working capital buffer is very slim (£72), indicating limited liquidity cushion. With only one employee and minimal operations, cash flow volatility could be high. The company’s ability to generate positive cash flow from operations is unclear but critical to sustaining liquidity.

4. Monitoring Points:

• Track trends in net current assets and net assets to detect further equity erosion.
• Monitor the company’s ability to generate operating cash flow and maintain liquidity.
• Review payment patterns on any credit facilities to avoid delinquency.
• Watch for any increase in liabilities or delays in statutory filings that may signal distress.
• Assess impact of any expansion or capital injections that could improve financial strength.