Company Number: 12998116

Analysis Date: 2025-07-20 14:38 UTC

1. Credit Opinion: DECLINE
   WJM Courier Services Ltd presents significant credit risk. The company shows persistent net liabilities and negative working capital in the most recent financial year. Despite being active since 2020, the company has not demonstrated financial improvement or profitability. The current liabilities exceed current assets by £3,297 as of 30 November 2023. Additionally, cash at bank is negative, indicating liquidity stress. The director loans of £7,000 suggest reliance on director funding rather than operational cash flow. Given these factors, the company lacks sufficient financial strength and liquidity to reliably service new credit facilities at this stage.

2. Financial Strength:
   The company’s balance sheet is weak with net liabilities of £3,272 at the year-end 2023, a substantial deterioration from net assets of £17,530 in 2022. This swing largely reflects a prior period correction or write-down, as 2021 showed net liabilities of £17,530. The fixed asset base is negligible (£25), indicating minimal tangible security. Shareholder funds are negative, reflecting accumulated losses or deficits. Reliance on director loans to meet liabilities further undermines the financial solidity. Overall, the company’s financial structure is fragile, with no equity buffer and high creditor exposure.

3. Cash Flow Assessment:
   Liquidity is poor, with negative cash balance of £1,657 and current liabilities exceeding current assets by £3,297 at the last reported date. Debtors (£10,001) provide some short-term asset coverage, but the company’s inability to convert this into positive cash flow is concerning. The absence of employees suggests limited operational scale or outsourcing, which may reduce fixed overheads but also limits internal capacity. The company’s cash flow position indicates an inability to meet short-term obligations without additional funding support, particularly from the director loans which have decreased from £16,018 to £7,000 but remain material.

4. Monitoring Points:

• Improvement or further deterioration of net current assets and net liabilities in upcoming accounts.
• Cash flow trends and debtor collection efficiency.
• Changes in director loans or additional external financing.
• Operational developments that may enhance revenue and profitability.
• Timely filing of accounts and confirmation statements to maintain transparency.