J&S SERVICES LONDON LTD

Executive Summary

J&S SERVICES LONDON LTD demonstrates a stable but modest financial position with positive working capital and small net asset growth. The company’s liquidity has weakened due to reduced cash balances, requiring conditional credit approval with close monitoring of cash flow and management stability. Overall, the business shows potential to service debt but warrants cautious ongoing oversight.

J&S SERVICES LONDON LTD - Analysis Report

Company Number: 12888984

Analysis Date: 2025-07-29 16:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

J&S SERVICES LONDON LTD is a small private limited company established in 2020, currently active and filing accounts on time. The company shows a modest but stable net asset base and positive working capital, indicating the ability to meet short-term obligations. However, cash balances have decreased materially from £11,314 in 2023 to £6,361 in 2024, and current liabilities have also declined, suggesting tighter liquidity. The business has a very small workforce (2 employees) and operates in diverse service sectors (cleaning, painting, other services), which may limit scalability. Frequent changes in directorship in recent years may indicate some management instability. Given these factors, credit should be extended on a conditional basis with monitoring of cash flow and management continuity.

2. Financial Strength:

• Net assets increased slightly from £3,295 (2023) to £3,959 (2024), showing modest growth in equity.
• Current assets exceed current liabilities by £3,959, indicating positive working capital.
• Cash on hand declined from £11,314 to £6,361, which is a concern for liquidity.
• Shareholders’ funds correlate closely with net assets, reflecting no unusual off-balance sheet liabilities.
• The company remains within the "Small" account category thresholds, with modest but stable financial footing.

3. Cash Flow Assessment:

• Cash position reduced by approximately 44% over the year, which may point to tighter cash conversion cycles or increased outflows.
• Current liabilities decreased significantly from £8,019 to £2,402, possibly indicating settled short-term debts or reduced creditor financing.
• Positive net current assets imply working capital is sufficient, but the reduction in cash warrants close scrutiny.
• The company has a small employee base and presumably low fixed costs, which may help manage liquidity risk.
• Absence of audit and limited financial disclosures reduce visibility into profitability and cash flow generation quality.

4. Monitoring Points:

• Track quarterly cash flow statements to ensure liquidity remains adequate to cover liabilities.
• Monitor management stability, especially any further director changes, as this may impact governance.
• Review debtor and creditor aging to assess working capital efficiency.
• Watch for any material contracts or sector-specific risks in cleaning and painting services that could affect revenue.
• Ensure timely filing of future accounts and confirmation statements to maintain regulatory compliance.