Company Number: 14155486

Analysis Date: 2025-07-29 16:59 UTC

1. Credit Opinion: DECLINE
   RD Jones Building Ltd shows significant financial distress as of the latest accounts dated 30 June 2024. The company has moved from a marginally positive net asset position (£1,032) in 2023 to a net liability position of (£30,606) in 2024. Its current liabilities drastically exceed current assets, resulting in a negative working capital position of (£82,228). This indicates an inability to meet short-term obligations from current assets, raising serious concerns about liquidity and going concern. The negative shareholders’ funds and net liabilities suggest erosion of capital base and poor financial resilience. Given these weaknesses and its micro entity status with limited operational scale (1 employee), the company does not demonstrate adequate financial strength or cash flow capacity to support new or extended credit facilities presently.

2. Financial Strength:
   The balance sheet reveals a declining asset base, with fixed assets reducing slightly from £78,088 to £68,472 and current assets collapsing to only £560. Creditors due within one year have increased to £82,788, substantially exceeding current assets. Long-term creditors remain significant at £16,850. The company’s net liabilities and negative shareholders’ equity indicate that liabilities exceed assets, which is a red flag for solvency. The financial trajectory from 2023 to 2024 is negative, with a sharp deterioration in net current assets and overall net worth.

3. Cash Flow Assessment:
   Current assets are almost negligible relative to current liabilities, reflecting poor liquidity and potential cash flow constraints. The working capital deficit suggests the company may struggle to meet immediate short-term debts and operational expenses without additional funding or restructuring. The absence of detailed profit and loss data limits cash flow analysis, but the balance sheet signals insufficient cash reserves or liquid assets to cover creditors, implying weak day-to-day financial flexibility.

4. Monitoring Points:

• Watch for improvements in net current assets and liquidity ratios in the next filing period.
• Monitor any changes in creditor terms or indications of restructuring or additional capital injections.
• Assess subsequent confirmation statements and accounts for signs of operational turnaround or continuing decline.
• Review director actions or announcements for strategic plans addressing financial weakness.
• Pay attention to any overdue filings or legal notices that may signal distress escalation.