2JCP LIMITED

Credit Opinion: CONDITIONAL

2JCP Limited is an active, filing-compliant engineering design business with a growing balance sheet, but recent trends in liquidity and equity give cause for caution. Net assets remain positive at £1.57 million, yet cash is low at £66,732 against current liabilities of £7.19 million, and a fixed charge over all company assets is already held by Ceskoslovenska Obchodni Banka, A.S., securing all present and future receivables. Any new bank facility would rank behind that charge unless it is released or subordinated. Because the company has elected not to file a profit and loss account, profitability cannot be verified from the public record. I would condition approval on: first-ranking security or a deed of subordination from the existing chargeholder; a facility size capped against the debtor book; monthly management accounts; and possibly a personal guarantee from the principal shareholder.

Financial Strength: Balance Sheet Health

• Net assets: £1,572,136 at 31 March 2026, down 34% from £2,378,038 at 31 March 2025. Shareholders’ funds have fallen by the same amount, and profit and loss reserves have fallen from £2.08 million to £1.27 million. Without a filed profit and loss account, it is not possible to confirm whether this decline reflects trading losses or distributions.
• Asset base: Total assets have grown to £8.61 million from £504,809 at incorporation in 2016, indicating business expansion. Tangible fixed assets are modest at £338,523.
• Liabilities: Total liabilities are £7.19 million due within one year, plus £113,472 due after more than one year and £75,600 in provisions. Current liabilities now represent 83% of total assets, leaving a thin equity cushion of roughly 18% of the balance sheet.
• Ownership: Xxxxxx Xxxxxxxxname shown to subscribers holds more than 75% of shares and voting rights and can appoint and remove directors. Other persons with significant control include several individuals with significant influence or control, plus Xxxxxx Xxxxxxxxname shown to subscribers and Xxxxxx Xxxxxxxxname shown to subscribers, each holding 25–50% of shares.

Cash Flow Assessment: Liquidity and Working Capital

• Cash position: £66,732 at year-end, down from £157,299 the prior year. This is equivalent to less than 1% of current liabilities and provides minimal buffer against trading disruption.
• Current ratio: Approximately 1.20 (£8.61 million current assets / £7.19 million current liabilities), down from 1.50 in the prior year. The ratio is acceptable on paper but heavily dependent on debtor collection.
• Debtor concentration: Current assets are almost entirely debtors (£8.54 million) and cash. Trade debtors have risen sharply from £1.14 million to £4.92 million, while amounts owed by group undertakings remain substantial at £3.24 million. This creates related-party and concentration risk; if these receivables are slow to convert, liquidity will tighten quickly.
• Creditor position: Trade creditors have risen from £3.75 million to £5.97 million, suggesting the business is partly funding operations through supplier credit. Corporation tax of £371,769 is due within one year.
• Cash flow visibility: No cash flow statement or profit and loss account is filed, so actual operating cash generation cannot be assessed from Companies House records.

Monitoring Points: Key Metrics to Watch

• Monthly cash balance and 13-week cash flow forecast.
• Trade debtor ageing and days sales outstanding, particularly the £4.92 million trade debtor balance and £3.24 million owed by group undertakings.
• Trade creditor days and any signs of supplier payment strain.
• Movement in net assets and reserves; whether dividends are being paid while cash remains low.
• Status of the fixed charge held by Ceskoslovenska Obchodni Banka, A.S., and any new security granted to other lenders.
• Timeliness of accounts and confirmation statement filings (currently up to date).
• Any county court judgments, winding-up petitions, or changes to the PSC register or board composition.

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