Company Number: 13121621

Analysis Date: 2025-07-20 14:09 UTC

1. Risk Rating: HIGH
   JWAUTOSHINESHOP LTD exhibits a high risk profile primarily due to its negative net current assets in the latest financial year, a significant increase in short-term liabilities, and a very low equity base.

2. Key Concerns:

• Liquidity Shortfall: As of 31 January 2024, the company’s net current assets are negative £10,689, compared to positive £2,312 in the prior year, indicating insufficient current assets to cover short-term liabilities. Cash on hand is only £655, which is unlikely to meet immediate obligations.
• Rising Short and Long-Term Debt: Current liabilities increased slightly to £28,570 while the company also recorded £10,163 in creditors due after more than one year, suggesting growing financial commitments that could strain cash flow.
• Diminished Shareholders’ Funds: Equity has dropped sharply from £2,312 to £184, implying the company is close to insolvency on a balance sheet basis and may struggle to absorb losses or raise capital.

3. Positive Indicators:

• Compliance and Filing: The company is active, up to date with accounts and confirmation statement filings with no overdue documents or apparent regulatory issues.
• Ownership and Control: The sole director and 75-100% owner, Mr. Jason Wadsworth, is current and appears personally invested in the company’s operations, potentially facilitating swift decision-making.
• Business Niche: Operating in retail trade of motor vehicle parts and accessories with an active online presence suggests some market engagement and revenue generation capacity.

4. Due Diligence Notes:

• Investigate the reasons for the sharp decline in net current assets and equity, including any losses or write-downs during the year.
• Assess the nature and terms of the £10,163 long-term creditors to determine financial flexibility and repayment risk.
• Review cash flow statements (not provided) to evaluate operational cash generation and the ability to meet ongoing liabilities.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Understand the business model and sales pipeline to assess sustainability given the liquidity constraints.