JSJ RENOVATIONS LIMITED

Executive Summary

JSJ Renovations Limited is in a precarious financial position characterized by substantial net liabilities, negative working capital, and minimal liquidity. The company relies heavily on director loans and shows no signs of profitability or asset strength, posing significant credit risk. Approval of credit facilities is not recommended without substantial financial restructuring or capital infusion.

JSJ RENOVATIONS LIMITED - Analysis Report

Company Number: 13171167

Analysis Date: 2025-07-29 17:26 UTC

1. Credit Opinion: DECLINE
   JSJ Renovations Limited shows severe financial distress as evidenced by persistent and substantial net liabilities (£-51k) over recent years. The company’s balance sheet is heavily reliant on director loans (£51k), which constitute the majority of current liabilities, indicating dependency on insider funding rather than external creditworthiness. The absence of fixed assets and minimal current assets (only £25 cash) reflect a weak asset base. The company’s ongoing negative net assets and lack of profitability raise concerns about its ability to meet debt obligations or sustain future operations without additional capital injections. Given these factors, extending credit would pose a high risk.

2. Financial Strength:
   The company’s balance sheet demonstrates poor financial health. Fixed assets have been fully depreciated to zero net book value. Current liabilities far exceed current assets, resulting in a negative working capital position of approximately £51,000. Shareholders’ funds are negative, reflecting accumulated losses and reliance on director loans rather than equity. The company’s capital base is minimal (£3 share capital), and its financial trajectory shows deterioration from £-4.7k net liabilities in 2021 to £-51k in 2025. This indicates worsening solvency and a fragile financial structure.

3. Cash Flow Assessment:
   With only £25 in cash and current liabilities exceeding £51,000, liquidity is critically insufficient. The negative net current assets highlight an inability to cover short-term obligations from available liquid resources. The company’s cash flow position is unsustainable without external financial support, and there is no evidence of operational cash inflows to alleviate this pressure. Dependence on director loans suggests cash flow constraints and limited access to traditional financing.

4. Monitoring Points:

• Track director loan accounts closely to assess any changes in insider funding levels.
• Monitor upcoming accounts and cash flow statements for evidence of operational improvements or additional capital injections.
• Watch for any changes in current liabilities or attempts to restructure debt.
• Review any new business contracts or revenue generation that could impact liquidity.
• Observe director stability and management actions, especially given recent director resignations and appointments.