JUMP SW LLP

Executive Summary

Jump SW LLP shows a modest but positive net asset position in its first year, supported by tangible fixed assets and member loans. However, cash reserves are low and liabilities substantial, indicating potential liquidity risks. Conditional credit approval is recommended with close attention to cash flow management and debtor collections in the near term.

JUMP SW LLP - Analysis Report

Company Number: OC445951

Analysis Date: 2025-07-29 12:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Jump SW LLP is a newly established limited liability partnership with its first financial year ending 31 March 2024. The financial statements show a net asset position and positive net current assets, but the company carries significant long-term creditor obligations (£154k) relative to its current asset base (£72k). The presence of loans due to members (£52k) further indicates reliance on internal financing. Given the limited financial history and modest cash reserves (£3.2k), credit approval should be conditional upon ongoing monitoring of cash flow and debtor collections to ensure timely servicing of liabilities.

2. Financial Strength
   The LLP’s fixed assets total £177,732, indicating investment in tangible assets, likely plant and machinery. Net current assets stand at £28,866, which is positive but modest relative to current liabilities (£43,254). The total liabilities after one year are substantial at £154,301, which heightens financial risk if cash generation does not improve. Net assets attributable to members are £52,297, representing a thin equity buffer. The balance sheet shows a leveraged position with creditor funding exceeding cash and current assets, suggesting limited financial flexibility.

3. Cash Flow Assessment
   Cash at bank is low (£3,241), which is a potential liquidity concern. Debtors are significant (£68,879), making the company’s liquidity reliant on efficient receivables management. Current liabilities exceed cash and debtors combined, indicating potential working capital pressure. The absence of an income statement limits assessment of profitability and operating cash flows, but the financing structure implies the LLP depends on member loans and creditor funding. Monitoring debtor turnover and cash conversion cycles will be critical.

4. Monitoring Points

• Debtor collection efficiency and ageing profile to prevent cash flow strain
• Liquidity ratios, especially current ratio and quick ratio, to track working capital adequacy
• Ability to meet short-term liabilities without resorting to additional member loans or external financing
• Progress in reducing long-term creditor obligations and improving net asset position
• Any changes in member loans and related party transactions for signs of financial stress