JS EXPRESS COURIERS LTD

Executive Summary

JS Express Couriers Ltd demonstrates significant financial weakness with worsening negative net assets and working capital deficits, raising substantial concerns about its short-term liquidity and overall creditworthiness. Increasing current liabilities and negative equity suggest ongoing operational and financial challenges, making the company a high credit risk. Credit extension is not recommended without substantial improvement in financial stability and transparency.

JS EXPRESS COURIERS LTD - Analysis Report

Company Number: 13280215

Analysis Date: 2025-07-20 13:49 UTC

1. Credit Opinion: DECLINE
   JS Express Couriers Ltd exhibits significant financial distress, highlighted by persistent and increasing net current liabilities and negative shareholders' funds over the last three years. The company’s inability to maintain positive working capital and the large increase in current liabilities from £31,348 in 2023 to £50,105 in 2024 raise serious concerns about its capacity to meet short-term obligations. The absence of income statement data limits detailed profitability assessment, but the deteriorating balance sheet strongly suggests ongoing losses or cash flow issues. The director's sole management and lack of external audit further limit transparency and increase risk. For these reasons, extending credit would carry a high risk of default.

2. Financial Strength: Weak
   The balance sheet shows a negative net asset position of £27,678 as of 31 March 2024, worsening from £9,310 negative in the prior year. Fixed assets (primarily motor vehicles) are modest at £15,881 but are outweighed heavily by current liabilities of £50,105. The company’s equity is negative (£-27,778), indicating accumulated losses or shareholder withdrawals exceeding capital contributions. The share capital remains minimal at £100, providing little buffer against losses. This weak financial structure undermines the company’s solvency and long-term viability.

3. Cash Flow Assessment: Poor Liquidity and Working Capital
   Current assets stand at only £6,546 against high current liabilities of £50,105, resulting in a severely negative net working capital of £-43,559. Cash on hand increased to £2,367 but remains insufficient to cover immediate liabilities. Debtor balances have decreased from £5,704 to £4,179, which may indicate collection challenges or reduced sales. The sharp rise in creditors, particularly “other creditors” increasing from £28,193 to £48,266, suggests mounting unpaid obligations. This liquidity squeeze severely restricts the company’s operational flexibility and ability to service debt or supplier payments timely.

4. Monitoring Points:

• Continued deterioration or improvement in working capital and liquidity ratios.
• Trends in current liabilities, especially the composition and aging of trade and other creditors.
• Cash flow statements or management accounts if available to assess operational cash generation.
• Any changes in director or ownership structure that might affect governance or risk profile.
• Timely submission of next accounts and confirmation statements to monitor ongoing compliance.