NJBUSINESS BUREAU LIMITED

Executive Summary

NJBusiness Bureau Limited is currently showing significant solvency and liquidity risks, with negative net assets and cash insufficient to cover liabilities. While regulatory compliance is maintained and the director asserts going concern, the financial position raises concerns about operational sustainability. Further detailed financial information is required to assess the company’s viability and risk exposure comprehensively.

NJBUSINESS BUREAU LIMITED - Analysis Report

Company Number: 13227131

Analysis Date: 2025-07-29 13:43 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net current assets and shareholders’ funds, indicating insolvency risk. Low cash balances relative to current liabilities suggest liquidity concerns. The company’s micro status and limited financial disclosures restrict visibility but the deteriorating financial position is a red flag.

2. Key Concerns:

• Solvency: Negative shareholders’ funds (£-15,966 as of 2023) and negative net current assets (~£-28,000) persist across three years, implying the company cannot cover its short-term obligations with current assets.
• Liquidity: Cash on hand has decreased from £5,377 in 2022 to £1,873 in 2023 against current liabilities of nearly £30,000, indicating potential cash flow difficulties to meet immediate payments.
• Operational Sustainability: There is no income statement provided, and no indication of profitability or revenue trends. The continuing erosion of net assets and reliance on intangible fixed assets (software) might suggest limited operational cash generation and possible reliance on director funding.

3. Positive Indicators:

• Compliance: All statutory filings (accounts and confirmation statements) are up to date with no overdue submissions, suggesting adequate regulatory compliance.
• Going Concern Assertion: The director has stated a reasonable expectation of going concern, which may imply access to additional funding or plans to improve operations not visible in the accounts.
• Limited Overheads: The company is micro-sized with minimal share capital (£100), which may limit complexity and risk from extensive liabilities.

4. Due Diligence Notes:

• Obtain and review the income statement and cash flow statement to understand revenue generation, profitability, and cash flow dynamics.
• Investigate the nature and recoverability of intangible assets (software) given their material value relative to total assets.
• Clarify the source of funding and plans from the director regarding how current liabilities are being managed or settled given the negative working capital.
• Assess any contingent liabilities or off-balance sheet obligations that could further impact solvency.
• Review director’s background and related party transactions for potential financial support or conflicts of interest.