Company Number: 13636766

Analysis Date: 2025-07-29 18:47 UTC

1. Risk Rating: HIGH
   JTK (LEASING) LTD exhibits significant financial distress indicators, notably persistent negative net assets and a large imbalance between current assets and current liabilities, raising concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets: The company shows net liabilities of £10,950 at FY 2024 and had larger deficits in prior years, indicating an erosion of shareholders' equity which poses solvency risks.
• Current Liabilities Exceed Current Assets: Although net current assets are positive (£63,360), the overall financial structure is heavily leveraged with substantial long-term liabilities (£274,310) exceeding total assets less current liabilities, suggesting liquidity stress.
• Related Party Transactions and Director Loans: Significant loans to directors (£63,929) and sizeable related party creditor balances (£40,081) with JTK Construction Ltd present potential conflicts of interest and dependency risks that warrant scrutiny.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, indicating adherence to regulatory requirements.
• Stable Investment Property Valuation: The investment property asset is valued consistently at £200,000, providing a tangible asset base.
• Active Directorship and Control Transparency: Directors and PSCs are clearly identified with no disqualifications reported, supporting governance transparency.

4. Due Diligence Notes:

• Investigate the nature and terms of the loans to directors and related party balances to assess repayment prospects and impact on cash flow.
• Review the company's cash flow projections and debt servicing arrangements given the high level of bank loans and other creditors relative to assets.
• Confirm the valuation methodology and market conditions underpinning the investment property figure to ensure asset realizability.
• Evaluate the business model sustainability and revenue generation as the company currently has no employees and minimal cash on hand.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.