Company Number: 12634536

Analysis Date: 2025-07-20 18:08 UTC

1. Credit Opinion: APPROVE with conditions NJWE LIMITED shows a stable financial position with positive net current assets and shareholder funds. The company operates in the real estate agency sector, providing property consultancy services, which typically have moderate capital requirements and steady cash flow. Although the company is small and relatively young (incorporated 2020), its accounts demonstrate consistent liquidity and manageable liabilities. However, given the limited scale and some fluctuations in cash balances, approval is recommended with conditions: ongoing monitoring of cash flow and debtor collections is required to ensure sustained payment capacity.

2. Financial Strength:

• Shareholders’ funds stand at £21,728 as of 31 May 2024, down slightly from £23,544 the prior year, indicating a marginal reduction in net assets but maintaining positive equity.
• Fixed assets are minimal (£144), consistent with a service-oriented business model.
• Net current assets of £21,584 reflect good short-term financial health, with current assets (£34,944) comfortably exceeding current liabilities (£13,360).
• The company has a modest share capital of £100 and no indications of long-term debt, which limits financial risk.

3. Cash Flow Assessment:

• Cash on hand decreased to £19,433 from £25,766 in the prior year, indicating some cash outflow which should be monitored.
• Trade debtors increased to £10,458 from £4,200, suggesting more revenue on credit; tight control of debtor collection is important to avoid liquidity strain.
• Current liabilities have decreased from £16,465 to £13,360, improving working capital.
• The company has paid dividends (£25,000) despite limited capital, which could impact liquidity; future dividend payments should be assessed against cash availability.
• The small number of employees (2) supports lower fixed overhead costs, benefiting cash flow stability.

4. Monitoring Points:

• Debtor aging and collection efficiency: rising trade debtors warrant scrutiny for potential cash flow impact.
• Cash balances and liquidity trends: continuing decline in cash reserves needs monitoring.
• Profitability indicators (not disclosed but critical): since profit & loss details are omitted, periodic review of management accounts is recommended.
• Dividend policy: ensure dividend payments do not compromise operational liquidity.
• Timely filing of accounts and confirmation statements: currently up to date, continue to monitor compliance.