SERENITY JIU JITSU LIMITED

Executive Summary

Serenity Jiu Jitsu Limited shows a marked improvement in financial position with healthier net assets and working capital as of 2024, supporting a conditional credit approval. The company's micro size and limited equity require ongoing monitoring of liquidity and operational cash flow to mitigate short-term risks. Continued prudent financial management and stable market demand will be key to sustaining its creditworthiness.

SERENITY JIU JITSU LIMITED - Analysis Report

Company Number: 12938076

Analysis Date: 2025-07-20 14:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Serenity Jiu Jitsu Limited demonstrates improving financial health with a positive turnaround in net current assets and net assets in the latest financial year. However, the company still shows relatively modest asset base and limited share capital (£10), reflecting its micro entity status and early stage of growth. Credit approval should be conditional upon continued monitoring of cash flow and working capital to ensure sustained liquidity and ability to meet short-term obligations, given the volatility seen in previous years.

2. Financial Strength:

• The company’s net assets increased significantly from £6,502 in 2023 to £21,359 in 2024, indicating a strengthening balance sheet.
• Fixed assets declined slightly to £37,142 but remain substantial relative to company size, suggesting investment in operational capacity.
• Crucially, net current assets improved from a negative £5,749 in 2023 to a positive £14,844 in 2024, reflecting better management of current liabilities and improved liquidity.
• Long-term creditors reduced from £35,642 to £30,627, which is a positive sign but still a notable liability relative to total assets (£51,986).
• Overall, the balance sheet is stable for a micro business but limited in scale and cushioning.

3. Cash Flow Assessment:

• Current assets rose markedly to £39,164, largely driven by improved cash or receivables, enhancing short-term liquidity.
• Current liabilities reduced slightly but remain significant at £24,320.
• The positive net current assets figure indicates that the company has sufficient working capital to cover short-term debts, reducing immediate liquidity risk.
• No detailed profit and loss or cash flow statement is provided, limiting assessment of cash generation and operational cash flow trends.
• The company employs 5 people on average, indicating manageable payroll commitments aligned with current asset levels.

4. Monitoring Points:

• Watch the trend in current liabilities, especially any increases that could strain working capital.
• Monitor fixed asset investments to ensure they contribute to revenue growth and do not burden liquidity.
• Track profitability and cash flow generation when P&L data become available to confirm sustainable debt servicing capacity.
• Keep oversight on director actions and any changes in control or governance since the business is closely held and dependent on one director.
• Assess impact of any economic changes on demand for physical well-being services, a sector sensitive to consumer discretionary spending.