JWS AVIATION LTD

Executive Summary

JWS Aviation Ltd demonstrates solvency with positive net current assets and timely regulatory filings but faces moderate liquidity concerns due to declining cash and limited financial disclosures. The company’s small size and ownership concentration warrant further review of profitability and related-party transactions to fully assess operational and governance risks.

JWS AVIATION LTD - Analysis Report

Company Number: 13652028

Analysis Date: 2025-07-20 14:08 UTC

1. Risk Rating: MEDIUM
   JWS Aviation Ltd shows positive net current assets and shareholders’ funds, indicating solvency on paper. However, the declining cash balance, persistent director loans, and relatively small scale of operations suggest moderate liquidity and operational risks. The absence of an audit and limited disclosure restrict full risk assessment.

2. Key Concerns:

• Declining Liquidity: Cash decreased from £22,697 in 2021 to £15,175 in 2024, potentially straining short-term obligations despite positive net current assets.
• Concentration of Control: Significant ownership and voting control are split between two individuals, which could present governance or succession risks if disputes arise.
• Limited Financial Transparency: The company is exempt from audit and does not file a profit and loss account, limiting insight into operational profitability and cash flow generation.

3. Positive Indicators:

• Positive Net Current Assets: Consistent net current assets (£22,510 in 2024) exceed current liabilities, supporting short-term solvency.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating regulatory compliance and good governance on reporting.
• Stable Employee Base: Maintains a stable workforce of two employees, suggesting operational stability for its size.

4. Due Diligence Notes:

• Review the detailed profit and loss performance to assess profitability trends and cash flow sufficiency, as this is not currently disclosed.
• Investigate the nature and timing of director loans and dividends to understand cash outflows and potential related-party risks.
• Assess the debtor aging and collectability given the relatively high debtor balances (£16,437 in 2024) compared to cash reserves.
• Confirm there are no contingent liabilities or off-balance sheet obligations that could impair financial health.
• Understand the business model and market position within insurance brokerage (SIC 66220) to evaluate operational sustainability.