JSA ENGINEERING DESIGN LTD

Executive Summary

JSA Engineering Design Ltd is a newly established micro-entity with a limited financial track record and very tight liquidity, reflected in current assets closely matching current liabilities. The company’s declining net assets and working capital warrant a cautious, conditional credit approval subject to close monitoring of financial performance and liquidity. Credit exposure should be limited until the company demonstrates improved financial stability and operational cash flow generation.

JSA ENGINEERING DESIGN LTD - Analysis Report

Company Number: 14156584

Analysis Date: 2025-07-29 20:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JSA Engineering Design Ltd is a micro-entity with a very modest asset base and limited financial history given its incorporation in 2022. The company shows positive net assets but a significant decline in net current assets and overall net assets in the latest year. The current liabilities almost equal current assets, indicating tight liquidity. Given the company's young age, limited scale, and shrinking working capital, approval for credit facilities should be conditional on close monitoring and potentially a secured or limited credit line.

2. Financial Strength:

• Net assets decreased from £5,062 in 2023 to £1,574 in 2024, reflecting a reduction in equity and overall financial strength.
• Fixed assets are negligible (£530), indicating little investment in long-term resources.
• The company’s small size (micro entity) limits financial resilience.
• The balance sheet shows minimal buffer to absorb losses or economic shocks given the very slim net current assets of £1,176.

3. Cash Flow Assessment:

• Current assets (£41,621) are barely above current liabilities (£40,445), yielding a current ratio close to 1.03, which is weak for comfort in liquidity terms.
• The working capital is positive but very tight, suggesting the company may struggle to meet short-term obligations if revenues are disrupted.
• No information on cash flow from operations was provided, but the decline in net assets and working capital indicates cash flow pressures.

4. Monitoring Points:

• Watch for continued decline in net assets and working capital to avoid insolvency risk.
• Monitor timely filing of accounts and confirmation statements (currently up to date).
• Keep track of director conduct and any changes in management or business strategy given the company’s size and exposure.
• Evaluate future trading performance, especially revenue growth and profitability once more detailed financials are available.