JWWB LTD

Executive Summary

JWWB Ltd is a small, young business exhibiting modest growth in net worth but constrained liquidity and working capital. The company can currently meet its short-term obligations, but the narrow cash buffer and reduced debtor balances warrant cautious credit extension. Conditional approval is recommended with close ongoing monitoring of cash flow and debtor management to mitigate credit risk.

JWWB LTD - Analysis Report

Company Number: 13936823

Analysis Date: 2025-07-29 19:01 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   JWWB Ltd is a recently incorporated private limited company (2022) operating in the business support services sector (SIC 82990). The company shows modest positive net current assets and shareholders’ funds which have increased from £4,121 to £7,247 in the latest year, indicating some growth in net worth. However, current liabilities remain high relative to current assets, limiting liquidity. The company is small scale with only 2 employees and has no audit requirement, thus financial transparency is limited. Given the short operating history, limited scale, and tight working capital, credit approval should be conditional on monitoring cash flow closely and obtaining up-to-date management accounts.

2. Financial Strength:

• Balance sheet shows net assets of £7,247 as at 31 March 2024, up from £4,121 the prior year, reflecting retained earnings growth.
• Fixed assets are minimal (£2,614) and mainly comprise plant and machinery, indicating limited capital investment.
• Current assets include £157,636 (cash £68,319 and debtors £89,317) against current liabilities of £153,003, producing a small positive net current asset position (£4,633).
• Debtor balances have reduced significantly from £215,176 to £89,317, which may impact future cash inflows.
• The company has no long-term liabilities or bank debt disclosed, which reduces financial risk but also limits leverage capacity.

3. Cash Flow Assessment:

• Cash balances decreased substantially from £145,572 to £68,319 year-on-year, which signals tighter liquidity.
• Debtor collection appears slower or reduced, which could pressure cash flows.
• Current liabilities have also decreased from £356,627 to £153,003, indicating some creditor management or reduction in obligations.
• The net working capital is positive but marginal, suggesting limited buffer to absorb shocks or delays in receivables.
• The company’s small size and limited employee base imply cash flow volatility should be anticipated; ongoing cash flow monitoring is essential.

4. Monitoring Points:

• Track debtor aging and collections closely to ensure timely cash conversion.
• Monitor cash balances and liquidity ratios monthly to avoid shortfalls.
• Review creditor payment terms and any changes in current liabilities.
• Obtain interim management accounts to identify any emerging cash flow or profitability issues.
• Evaluate the impact of any new contracts or business development on financials.
• Confirm directors maintain prudent financial controls given limited capital and working capital cushion.