JT BUILDING SOLUTIONS LTD

Executive Summary

JT Building Solutions Ltd exhibits high financial risk due to its significant negative net assets and severe working capital deficit, raising concerns about solvency and liquidity. While the company remains compliant with filings and active, the sharp decline in financial health warrants further investigation into operational performance and financial restructuring plans. Investors should exercise caution and conduct thorough due diligence before engagement.

JT BUILDING SOLUTIONS LTD - Analysis Report

Company Number: 13210476

Analysis Date: 2025-07-29 12:19 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets and working capital, reflecting solvency and liquidity risks. The rapid deterioration from net assets of £731 in 2022 to a deficit of £18,794 in 2024 is a strong negative indicator.

2. Key Concerns:

• Negative Net Assets: The company’s net assets have declined sharply to -£18,794, indicating insolvency on a balance sheet basis.
• Severe Working Capital Deficit: Current liabilities of £35,398 far exceed current assets of £24, implying inability to meet short-term obligations.
• Lack of External Capital: Share capital is nominal (£1.00) and there is no evidence of additional funding or reserves to support operations.

3. Positive Indicators:

• Compliance: The company is up to date with filing annual accounts and confirmation statements, showing regulatory compliance.
• Active Status: The company remains active with no signs of liquidation or administration proceedings.
• Single Director with Operational Involvement: The sole director is also the owner and a trade professional (bricklayer), which may reflect hands-on management.

4. Due Diligence Notes:

• Investigate the cause of the sharp deterioration in financial position between 2022 and 2024, including operational losses or creditor pressures.
• Assess cash flow and payment history to suppliers and creditors to evaluate liquidity risk in practice.
• Verify if there are any contingent liabilities or related party transactions not reflected in the filings.
• Understand business model viability and pipeline of contracts to assess future revenue prospects.
• Confirm director’s plans for recapitalization or restructuring given the negative equity position.