JML SOFTWARE SOLUTIONS LIMITED

1. Risk Rating: MEDIUM

Justification: JML Software Solutions Limited is an active private company with up-to-date statutory filings and a strengthened balance sheet, reporting positive net assets of approximately £1.0m at 30 June 2025 following revenue growth to £2.8m. However, the company reported negative net assets in each of the three years to 31 October 2023, cash reserves have fallen materially from prior-year levels, and total liabilities remain significant relative to available cash. Recent changes to the board and inconsistencies between the Companies House record and the filed accounts (including the registered office address) reduce confidence in the data and require verification.

2. Key Concerns

• Recent history of balance sheet weakness: Net assets were negative in the financial years ending 31 October 2021, 2022 and 2023. Although the latest accounts show a return to positive net assets, this history indicates limited retained earnings cover and a relatively recent return to solvency on a balance sheet basis.
• Declining liquidity relative to obligations: Cash held at 30 June 2025 was approximately £655k, down from £888k in the prior year and from over £1.5m in 2022 and 2023. Total liabilities remain around £1.8m, and the available data does not provide a split between current and non-current liabilities, making short-term liquidity difficult to assess fully.
• Governance and record consistency: Multiple director resignations and appointments occurred in late 2025 and 2026. The registered office shown in the Companies House overview (Bristol) differs from the address in the filed accounts (Exeter). The PSC entries attribute aggregate shareholdings that appear to exceed 100% when combined, requiring clarification.

3. Positive Indicators

• Strong revenue growth: Turnover increased from approximately £1.7m in the year to 30 June 2024 to approximately £2.8m in the year to 30 June 2025.
• Restored positive equity: Shareholders’ funds were approximately £1.0m at 30 June 2025, compared with negative net assets in prior years.
• Compliance record: Accounts and confirmation statement filings are shown as not overdue; the company is active and not in liquidation, administration or receivership.
• External audit: The latest accounts were prepared under the small companies regime and reference external auditors.

4. Due Diligence Notes

• Reconcile the registered office address discrepancy between the Companies House overview and the filed accounts.
• Obtain a detailed balance sheet split showing current assets, current liabilities, and liabilities due after one year to assess working capital and short-term solvency.
• Review the reasons for recent director resignations and appointments and confirm the current board composition against the directors’ report and officer records.
• Clarify the PSC register, particularly how the shareholding interests of Polaris Software Limited and the two individual PSCs relate to one another given the percentages disclosed.
• Examine aged debtor and creditor schedules to understand cash conversion cycles and payment terms.
• Independently verify website contact details, as website data is automatically crawled and unverified.