JS MECHANICAL 2022 LTD

Executive Summary

JS MECHANICAL 2022 LTD is a micro-entity newly established in late 2022, operating in plumbing and HVAC installation under sole director control. While it maintains regulatory compliance and positive equity, its limited operational scale, modest asset base, and tight working capital position present medium solvency and liquidity risks that warrant further scrutiny. Investors should focus on cash flow stability and governance structures before proceeding.

JS MECHANICAL 2022 LTD - Analysis Report

Company Number: NI693042

Analysis Date: 2025-07-29 12:50 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (December 2022) and operates as a micro-entity with limited financial history. The presence of provisions for liabilities and creditors exceeding current assets suggests potential solvency and liquidity concerns. However, no overdue filings or regulatory issues are noted.

2. Key Concerns:

• Solvency and Liquidity: The balance sheet shows total creditors amounting to £11,377 (£2,734 due within one year and £8,643 after one year), while current assets are only £17,546 and net current assets are thin, indicating tight working capital. Provisions for liabilities of £6,857 further reduce available funds. This could impair the company’s ability to meet obligations if cash flow is not well-managed.
• Operational Scale and Sustainability: The company had zero employees on average for the first financial period and limited fixed assets (£11,027), suggesting a very small or possibly owner-operated business. This raises questions about capacity to scale or sustain operations without external resources.
• Single Director and Shareholder Control: John Small controls 75-100% of shares and voting rights and is the sole director, concentrating decision-making. This raises governance risk, particularly in absence of independent oversight.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with Companies House requirements.
• Positive Shareholders’ Funds: Despite limited scale, the company reports shareholders’ funds of £7,516, indicating some equity buffer.
• Clear Industry Focus: The SIC code 43220 clearly defines the business as plumbing, heating, and air-conditioning installation, providing clarity on sector and operational scope.

4. Due Diligence Notes:

• Review Cash Flow and Provisions: Investigate the nature of the £6,857 provisions and creditor terms to assess timing and risk to solvency.
• Clarify Operational Model: Understand why no employees were reported and whether the director is subcontracting or using other resources.
• Assess Director’s Background: Perform background checks on John Small for any prior insolvency or regulatory issues.
• Future Business Plans and Funding: Enquire about plans for growth, capital injection, or credit facilities to support working capital needs.