JW CAM SOLUTIONS LTD

Executive Summary

JW CAM SOLUTIONS LTD is a micro-sized engineering company with limited operating history and a small equity base. While it currently maintains positive net assets and working capital, the significant decline in these metrics over the last year raises concerns about financial stability and cash flow sufficiency. Conditional credit approval is recommended with stringent monitoring of liquidity and financial performance going forward.

JW CAM SOLUTIONS LTD - Analysis Report

Company Number: 14483915

Analysis Date: 2025-07-19 12:22 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JW CAM SOLUTIONS LTD is a very recently established micro-entity with limited financial history. The company shows positive net current assets and net assets, indicating it currently has more short-term assets than liabilities, but the significant decline in working capital and net assets from 2023 to 2024 is a concern. The business operates in engineering and machining activities, which can be cyclical and capital intensive. Given the small scale, limited financial buffer, and recent start-up status, credit provision should be limited and closely monitored. Approval is conditional on further financial development and evidence of stable cash flow generation.

2. Financial Strength:
   The balance sheet at 30 November 2024 shows current assets of £6,957 against current liabilities of £5,317, resulting in net current assets of £1,640 and net assets of £1,568. This is a marked decline from the prior year’s net current assets and net assets of £4,262. The company’s equity base is very small, reflecting its micro-entity status and limited capital. There are no fixed assets noted, suggesting a lean asset structure. The drop in net assets may indicate losses or distributions not detailed here, which weakens financial resilience.

3. Cash Flow Assessment:
   Current assets mainly comprise cash and short-term receivables, but the reduction in current assets year-on-year suggests tightening liquidity. The company employs one person, minimizing payroll burden. However, the limited working capital and low absolute cash balances constrain its ability to absorb unexpected expenses or downturns. Without profit and loss data, cash flow from operations cannot be fully assessed, but the declining net assets and working capital imply cash generation challenges. Monitoring cash flow statements or bank statements is recommended for a fuller picture.

4. Monitoring Points:

• Monitor quarterly cash flow and bank balances to ensure liquidity remains sufficient for operational needs.
• Watch for recovery or stabilization in net assets and working capital in the next accounting period.
• Track any new financing or capital injections that improve equity and liquidity.
• Assess any changes in customer concentration or payment terms that might affect receivables and cash flow.
• Review director conduct and company filings to ensure compliance and stability.