ME & JORDAN LTD

Executive Summary

ME & JORDAN LTD is a micro-entity with declining net assets and a negative working capital position, indicating emerging liquidity risks. While currently solvent and compliant, credit approval should be conditional on further assurances regarding cash flow and working capital support. Ongoing monitoring of liquidity and financial performance is recommended to manage credit risk effectively.

ME & JORDAN LTD - Analysis Report

Company Number: 14403327

Analysis Date: 2025-07-20 13:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ME & JORDAN LTD is a micro-entity operating in management consultancy with a single director and shareholder controlling 75-100% of the company. The company remains active and compliant with filing deadlines. However, the latest financials show a decline in net assets from £7,102 to £3,110 and a deterioration in net current assets from a positive £646 to a negative £1,420, indicating liquidity pressure. The company’s ability to meet short-term obligations is marginal and has weakened over the latest year. Given the limited scale, single director control, and reduced liquidity, credit approval should be conditional on obtaining further information on cash flow projections and any planned capital injections or working capital support.

2. Financial Strength
   The balance sheet shows very modest fixed assets (£4,530) and current assets (£26,299) mostly likely consisting of cash and receivables. Current liabilities exceed current assets, causing a working capital deficit of £1,420. Net assets have declined by more than 50% compared to the prior year (£7,102 to £3,110), indicating erosion of equity. The company remains solvent but with a fragile capital base typical of micro-entities. The decline in net assets and negative working capital raise concerns about the company’s financial resilience.

3. Cash Flow Assessment
   The negative net current assets position signals potential cash flow strains to cover short-term liabilities. With only one employee (the director) and likely limited operating complexity, cash flow volatility could be significant if receivables are delayed or expenses rise. No detailed cash flow statements are provided, so liquidity risk should be monitored closely. The company appears to rely heavily on the director’s ongoing financial support or rapid collections to maintain operations.

4. Monitoring Points

• Follow-up on cash flow forecasts and working capital management plans.
• Monitor subsequent filings for improvements or further deterioration in net assets and liquidity.
• Confirm no adverse changes in director status or company operations that might impact creditworthiness.
• Watch for any material changes in current liabilities or new debt facilities that could affect repayment capacity.
• Assess any upcoming contracts or revenue streams that could enhance cash inflows.