PARAGON JA SERVICES LIMITED

Executive Summary

Paragon JA Services Limited shows signs of financial improvement with increased net current assets and asset investment, supporting operational stability. However, elevated long-term liabilities and director loan reliance present moderate solvency and liquidity risks. Continued monitoring of debt obligations and cash flow is recommended to ensure sustainable financial health.

PARAGON JA SERVICES LIMITED - Analysis Report

Company Number: 12667673

Analysis Date: 2025-07-20 14:49 UTC

1. Risk Rating: MEDIUM
   The company exhibits improving financial metrics but also carries significant non-current liabilities and director loans, which introduce moderate solvency and liquidity risks. The absence of an audit and limited disclosures warrant cautious evaluation.

2. Key Concerns:

• Increasing Long-Term Creditors: Creditors due after more than one year increased from £71k to £112k, indicating rising long-term liabilities that may pressure future cash flows.
• Director Loan Exposure: A substantial director loan of approximately £75k was outstanding during the year, which although reportedly repaid post-year-end, reflects reliance on related-party financing.
• Modest Equity Base & Small Share Capital: Share capital remains nominal (£1), with shareholders’ funds at £67k, which could limit financial resilience against unexpected downturns or obligations.

3. Positive Indicators:

• Improved Net Current Assets: Net current assets rose sharply from £9k to £75k, showing enhanced short-term liquidity and working capital management.
• Growing Tangible Assets: Fixed assets increased notably to £104k, suggesting investment in operational capacity.
• No Overdue Filings & Active Status: All statutory filings are timely with no overdue accounts or confirmation statements, indicating compliance with Companies House requirements.

4. Due Diligence Notes:

• Verify nature and repayment terms of non-current creditors to assess long-term solvency implications.
• Confirm current status and terms of director loans and any other related-party transactions.
• Review cash flow statements (not filed here) to evaluate operational cash generation and debt servicing capacity.
• Assess the reasonableness of asset valuation and impairment policy given significant fixed asset additions.
• Investigate impact of dividends paid (£55k) relative to profits and cash flow.