JS INVESTMENTS LIMITED

Executive Summary

JS Investments Limited is a newly established micro-entity showing a modest but declining financial position with positive working capital and net assets. The company’s limited scale and lack of detailed profitability data warrant cautious credit exposure with conditions for monitoring updated financials and trading status. Overall, it presents a low but manageable credit risk suitable for small credit facilities under close review.

JS INVESTMENTS LIMITED - Analysis Report

Company Number: 14318249

Analysis Date: 2025-07-19 12:53 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. JS Investments Limited is a very young micro-entity with limited operating history and modest asset base. The decline in net assets and net current assets from the prior year signals some financial deterioration. However, the company remains solvent with positive net assets and working capital. Lack of employees and minimal fixed assets indicate a low operational scale and potentially limited cash flow generation. The recent director change and absence of profit and loss data constrain a full risk assessment. Recommend credit be extended with conservative limits and subject to updated financials and confirmation of ongoing trading viability.

2. Financial Strength:
   The company shows a net asset base of £9,439 as at 31 August 2024, down from £21,676 the previous year, indicating a reduction in equity likely due to losses or withdrawals. Fixed assets are minimal (£7,654) and have decreased slightly. Current assets have significantly dropped from £30,702 to £8,991, while current liabilities have fallen from £17,381 to £5,656, leaving net current assets positive at £3,335. The reduction in current assets and liabilities suggests lower scale of operations but maintains positive working capital. The balance sheet is solvent but fragile, typical for a micro-entity in early stages.

3. Cash Flow Assessment:
   Direct cash flow figures are unavailable, but the working capital position remains positive with current assets exceeding current liabilities by £3,335. The substantial decline in current assets could imply reduced cash or receivables, which may impact liquidity. No employees suggest limited operational overheads, which may mitigate cash burn. The absence of a profit and loss account limits insight into profitability or cash generation, so cash flow sustainability is uncertain and should be monitored closely.

4. Monitoring Points:

• Updated financial statements including profit and loss to assess profitability and cash flow generation.
• Trends in current assets and liabilities to monitor liquidity changes.
• Confirmation of trading activity and revenue generation given the low asset base and no employees.
• Director stability and governance given the recent change in directorship.
• Payment history and any external credit references if available.