J&S HOME SOLUTIONS LTD

Executive Summary

J&S HOME SOLUTIONS LTD is currently in a weak financial position characterized by negative net assets and significant working capital deficits, indicating poor liquidity and financial stress. The lack of profitability data and the erosion of equity suggest limited capacity to service new credit without further support or turnaround. Credit approval is not recommended at this time without material improvement or additional security.

J&S HOME SOLUTIONS LTD - Analysis Report

Company Number: 12779854

Analysis Date: 2025-07-29 13:41 UTC

1. Credit Opinion: DECLINE
   J&S HOME SOLUTIONS LTD shows a deteriorating financial position with increasing net liabilities and negative shareholders' funds as of the latest accounts. The company’s negative net current assets (£-37,203) and net liabilities (£-13,723) indicate poor liquidity and an inability to cover short-term obligations. The business is micro-sized with minimal turnover data, and no profit & loss details were filed, limiting visibility on operational cash generation. Given the persistent working capital deficit and erosion of equity over recent years without signs of recovery, the company currently lacks the financial strength to support additional credit facilities without substantial improvement or guarantees.

2. Financial Strength:
   The balance sheet reveals a steady decline in net assets from a positive £826 in 2022 to negative £13,723 in 2023. Fixed assets have decreased but remain relatively small (£23,680), while current liabilities have significantly increased to £39,550. The company’s equity is fully eroded and in deficit, suggesting accumulated losses or unpaid creditors. The capital base is effectively wiped out, and the company is reliant on external funding or owner support. No employees are recorded, indicating minimal operational scale or potential under-utilization of resources.

3. Cash Flow Assessment:
   Current assets (mainly cash and receivables) are inadequate to meet immediate liabilities, resulting in a negative working capital position. The company faces liquidity pressure with creditors due within one year exceeding current assets by a large margin. Without positive cash flow from operations or external injections, the company risks defaulting on short-term obligations. Absence of detailed P&L data prevents assessment of profitability or cash generation trends, but the balance sheet alone signals cash flow constraints.

4. Monitoring Points:

• Monitor quarterly or interim financial updates for improvement in net current assets and cash balances.
• Watch for any changes in director or ownership structure that might signify strategic shifts or restructuring.
• Review payment patterns and any defaults or late payments to suppliers or creditors.
• Assess filing of full accounts including profit and loss to better evaluate operational performance.
• Track any capital injections or restructuring efforts aimed at restoring solvency.