Company Number: 14226141

Analysis Date: 2025-07-20 12:13 UTC

1. Risk Rating: MEDIUM
   While JT RESTORATION LTD is currently solvent with positive net assets, the deterioration in working capital and low equity base raise some concerns about short-term liquidity and financial resilience.

2. Key Concerns:

• Negative net current assets of £5,732 as of 31 July 2024 indicate short-term liquidity pressure, with current liabilities exceeding current assets.
• The presence of creditors falling due after more than one year (£11,396) suggests medium or long-term debt obligations that may impact cash flow.
• The minimal net assets (£464) and decrease from the previous year (£669) indicate a very thin equity buffer, which could constrain the company’s ability to absorb financial shocks.

3. Positive Indicators:

• The company is up to date with all statutory filings including accounts and confirmation statements, indicating good regulatory compliance.
• The business has grown its fixed assets from zero to £18,784, which may reflect investment in operational capacity or equipment.
• Maintains a small but stable workforce of two employees, consistent with micro-entity status, suggesting manageable operational scale.

4. Due Diligence Notes:

• Review the nature and terms of the long-term creditors (£11,396) to assess repayment schedules and covenant risks.
• Investigate cash flow statements or bank balances, if available, to confirm liquidity position beyond balance sheet snapshots.
• Obtain management commentary or directors’ report (if any) to understand business prospects, client concentration, and potential risks.
• Confirm absence of any director disqualifications or governance issues given the company’s young age and small size.
• Evaluate the reason for the negative net current assets despite positive total net assets to understand working capital management.