JSR DATA SOLUTIONS LIMITED

Executive Summary

JSR Data Solutions Limited is a small, early-stage IT consultancy with modest balance sheet strength and reduced liquidity in the latest year. While it currently maintains positive working capital, the significant decline in cash reserves warrants caution. Conditional credit approval is advised with tight monitoring of cash flow and liquidity metrics to mitigate risk.

JSR DATA SOLUTIONS LIMITED - Analysis Report

Company Number: 13759854

Analysis Date: 2025-07-29 20:50 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. JSR Data Solutions Limited is a relatively new private limited company (incorporated late 2021) operating in the IT consultancy and software development sector. The company shows positive net current assets and shareholders’ funds but has experienced a significant decrease in cash and net current assets over the last year. The absence of trade debtors at the latest year-end may indicate slower revenue collection or a change in billing patterns. Given the company’s small size, limited operating history, and recent contraction in liquidity, credit facilities could be extended conditionally with strict monitoring and possibly limited to short-term working capital support.

2. Financial Strength:
   The balance sheet as of 30 November 2023 shows total current assets of £31,023 (all cash) against current liabilities of £20,361, producing net current assets of £10,662 and shareholders’ funds of the same amount. This is a sharp reduction from the prior year’s net current assets of £33,890 and cash of £58,506, which suggests a drawdown of cash reserves or increased cash outflows exceeding inflows. The company carries no fixed assets and operates with minimal working capital, which is typical for a micro or small IT consultancy. Overall, the financial strength is modest, with no significant tangible asset base and a reliance on cash to meet obligations.

3. Cash Flow Assessment:
   Cash at bank fell by approximately £27,500 from prior year-end, which is a concern for liquidity. The company had no trade debtors at the latest year-end, indicating that receivables are either collected promptly or revenue recognition/collection cycles have changed. Current liabilities remain modest but represent roughly two-thirds of current assets. The working capital position remains positive but has tightened substantially. The company should demonstrate stable or improving cash flow generation to support ongoing operational needs and debt servicing capacity.

4. Monitoring Points:

• Cash balances and liquidity trends each quarter.
• Trade debtor levels and aging to confirm ongoing revenue collection efficiency.
• Current liabilities level relative to current assets to avoid liquidity stress.
• Profitability trends once income statements become available, as only balance sheet data is provided.
• Director and shareholder stability, as key control is concentrated in two individuals.
• Any increase in borrowing or payment delays that may indicate cash flow difficulties.