WI JAMMIN LTD

Executive Summary

Wi Jammin Ltd is a start-up micro-entity with a weak financial position characterized by significant net liabilities and negative working capital. The company currently lacks the financial strength and cash flow to support additional credit. Credit facilities are not recommended at this time, but progress should be monitored closely through future filings and cash flow improvements.

WI JAMMIN LTD - Analysis Report

Company Number: SC755175

Analysis Date: 2025-07-29 19:36 UTC

1. Credit Opinion: DECLINE
   Wi Jammin Ltd is a newly incorporated micro-entity showing significant net liabilities (£5,391) and negative working capital (£4,995) as of its first financial year ending January 2024. The current liabilities substantially exceed current assets, indicating poor liquidity and inability to meet short-term obligations from existing resources. The absence of positive net assets and the negative equity position raise concerns about financial stability and the company’s ability to service any credit facility without additional capital injection or operational turnaround. Given the early stage of the business and lack of financial strength, credit approval is not recommended at this stage.

2. Financial Strength:
   The balance sheet reveals a weak financial position. Total current liabilities stand at £5,115 while current assets are only £120, resulting in a net current liability position. The company has no fixed assets and negative net assets of £5,391. Shareholders’ funds are negative, reflecting accumulated losses or initial expenses exceeding capital contributions. This is typical for a start-up but indicates vulnerability and a lack of financial buffer. No evidence of debt restructuring or external funding is present to offset this weakness.

3. Cash Flow Assessment:
   The extremely low level of current assets, which likely includes minimal cash and receivables, versus substantial current liabilities suggests liquidity stress. The company may face challenges in meeting short-term payments such as trade creditors, rent, or wages without additional financing. Given the micro-entity status and single employee, overheads may be low, but cash flow from operations is currently insufficient to cover liabilities. No cash flow statement is provided, but the balance sheet position implies negative cash flow or reliance on owner funding.

4. Monitoring Points:

• Track next accounts filing to assess progress in improving net assets and working capital.
• Monitor cash flow statements for operational liquidity and cash burn rate.
• Review director and shareholder capital injections or loans supporting operations.
• Watch for any overdue liabilities or creditor pressure that might impact business continuity.
• Evaluate revenue growth and profitability trends once available to determine creditworthiness improvement.