Company Number: 14667534

Analysis Date: 2025-07-20 11:42 UTC

1. Risk Rating: MEDIUM

Justification: JTC Roofing & Cladding Limited is a very young company (incorporated in early 2023) with a single year of financials filed. The company shows positive net assets (£71,435) and net current assets (£41,543), indicating solvency at the balance sheet date. However, the presence of significant longer-term liabilities (£48,218) and a large corporation tax creditor (£94,132) signals potential liquidity stress and cash flow timing risk. The company is not in liquidation and filings are up to date, but limited financial history and concentrated director/shareholder control elevate risk.

2. Key Concerns:

• Liquidity Pressure: While there is positive working capital, the company has £217k current liabilities including a large corporation tax liability of £94k, which could strain near-term cash flows given only £109k cash and £149k debtors.
• Related Party & Dividend Transactions: The accounts disclose £311k profit but a £240k dividend paid within the first year, which could impact cash reserves and operational reinvestment capacity.
• Limited Operating History: Incorporated in 2023, the company has only one full year of financial data, limiting trend analysis and increasing uncertainty about sustainable revenue and profit generation.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: The company maintains a positive equity base (£71k), suggesting initial capitalisation and retained earnings.
• Timely Filing and Regulatory Compliance: No overdue accounts or confirmation statements, indicating good governance and compliance adherence.
• Experienced Directors: The five directors have relevant occupations in industrial roofing and management, which aligns with the company’s SIC code (roofing activities), supporting operational knowledge.

4. Due Diligence Notes:

• Investigate the nature and terms of the £48k long-term creditor and assess repayment schedules and impact on future liquidity.
• Review the corporation tax liability (£94k) to confirm timing of payment and any deferred tax or provisions not disclosed.
• Assess the dividend policy and rationale for the large £240k dividend in the first year, including impact on cash flow and capital adequacy.
• Obtain management accounts or cash flow forecasts to understand current liquidity and operational cash generation beyond the first year.
• Confirm related party transactions or intercompany balances, given the multiple directors from the same family and their occupations.