SJFX LTD

Executive Summary

SJFX LTD is a micro-entity operating in the IT services sector with limited financial resources and a sole controlling shareholder. While it currently meets its obligations with positive working capital and up-to-date filings, its thin equity base and operational dependency on one individual pose moderate risks to financial stability. Further analysis of profitability and business strategy is recommended to fully assess sustainability.

SJFX LTD - Analysis Report

Company Number: SC728368

Analysis Date: 2025-07-29 15:54 UTC

1. Risk Rating: MEDIUM
   SJFX LTD is an active micro-entity with limited financial data but shows a very modest net asset base and working capital position. The company is very small, with minimal employees and assets, which raises concerns about scalability and resilience, though it currently meets its short-term obligations.

2. Key Concerns:

• Limited Financial Cushion: Net assets increased from £141 to only £703, indicating very thin equity and low financial buffer against adverse events or unexpected liabilities.
• Minimal Working Capital: Net current assets are modest (£2,661 in 2024), suggesting limited liquidity reserves to manage cash flow fluctuations.
• Single Person Control and Operation: The company is controlled 100% by one individual who is also the sole director; this concentration of control may present governance risk and operational dependency.

3. Positive Indicators:

• Current Liabilities Covered by Current Assets: The company maintains a positive net current asset position, indicating it can meet short-term liabilities as they fall due.
• Compliance With Filing Requirements: No overdue accounts or confirmation statements, demonstrating good regulatory compliance and governance adherence so far.
• Incremental Growth in Net Assets: The increase in net assets from 2023 to 2024, albeit small, suggests some retained profitability or capital injection.

4. Due Diligence Notes:

• Profitability and Cash Flow Analysis: Detailed review of profit and loss data (not filed publicly) to assess ability to generate sustainable earnings and cash flow.
• Director Background Check: Verify the professional background and creditworthiness of the controlling director, Stephen Forsyth, given sole control and operational responsibility.
• Business Model and Market Position: Clarify the business activities under SIC codes 62090 and 62020 to understand revenue sources and competitive environment, considering the small size and limited assets.
• Future Funding Plans: Investigate any plans for capital raising or financing to support growth or buffer liquidity risks.