AMAZING JANE ACTIVEWEAR LTD

Executive Summary

AMAZING JANE ACTIVEWEAR LTD has shown encouraging signs of recovery in 2024 with positive net assets and improved liquidity compared to previous years of distress. However, its fragile working capital position and accumulated losses indicate ongoing vulnerabilities. Focused efforts on liquidity management, inventory control, and capital strengthening are essential to sustain and build upon this financial recovery.

AMAZING JANE ACTIVEWEAR LTD - Analysis Report

Company Number: 13099735

Analysis Date: 2025-07-29 12:32 UTC

Financial Health Assessment for AMAZING JANE ACTIVEWEAR LTD (as of 31 December 2024)

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1. Financial Health Score: C

Explanation:
The company shows signs of recovery from previous financial distress, evident in the positive net assets in 2024 compared to previous years’ deficits. However, the margin is thin with modest net current assets and a low equity base relative to liabilities, indicating a fragile financial condition. The score "C" reflects cautious optimism but signals the need for continued financial vigilance and improvement.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets (Shareholders’ Funds)	£6,093	Positive but marginal equity; improved from negative in prior years, showing signs of healing.
Net Current Assets (Working Capital)	£6,093	Slightly positive; indicates a narrow buffer to cover short-term liabilities—akin to a patient with stable but weak pulse.
Current Liabilities	£78,587	High short-term obligations; could pressure liquidity if cash flow weakens.
Cash on Hand	£39,340	Reasonable cash reserves providing some breathing room for operations.
Stock (Inventory)	£33,902	Significant inventory levels; requires monitoring to prevent overstocking (which can tie up cash).
Debtors (Receivables)	£11,438	Moderate receivables; effective collection needed to maintain cash flow.
Share Capital	£2.86	Minimal paid-up capital; company primarily funded by reserves and shareholder loans.
Profit and Loss Reserve	-£23,909	Accumulated losses still present; company has not fully healed past losses.
Turnover and Profitability	Not disclosed	Vital for full diagnosis; absence limits assessment of operational performance.

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3. Diagnosis

AMAZING JANE ACTIVEWEAR LTD exhibits symptoms of financial distress in prior years, with negative net assets from 2021 through 2023 indicating a critical condition akin to a patient with a weakened immune system. However, the 2024 figures reveal a positive turnaround in net assets and net current assets, signaling a recovery phase.

The company’s working capital is only marginally positive, which is a fragile sign of liquidity health — like a patient stabilizing but still at risk of relapse. High current liabilities relative to current assets indicate potential short-term pressure on cash flows, necessitating tight management of payables and receivables.

Stock levels have increased significantly, which may indicate either growing sales or slow-moving inventory; this requires careful inventory management to avoid cash being tied up unnecessarily.

The minimal share capital and continued negative retained earnings imply that the company is still in recovery from past losses, relying heavily on shareholder support and possibly loans. The recent resignation of one of the original directors in May 2025 may have governance implications but does not immediately affect financial health.

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4. Recommendations

• Strengthen Liquidity Management: Implement tighter control over receivables collection and negotiate extended terms with suppliers to improve working capital buffer—like stabilizing a patient’s vital signs through supportive care.

• Inventory Optimization: Review stock turnover rates and reduce slow-moving or obsolete inventory to free up cash and avoid “stockpile congestion,” which can choke cash flow.

• Capital Injection: Consider increasing share capital or shareholder loans to bolster equity and provide a stronger financial cushion, improving the company’s resilience against shocks.

• Profitability Focus: Prioritize strategies to increase gross margins and overall profitability. Without operational profitability data, focus on cost control and revenue growth initiatives.

• Regular Financial Monitoring: Establish monthly financial health checks to detect early warning symptoms of distress and act promptly.

• Governance and Leadership Stability: Ensure strong leadership and clear roles especially after director changes to maintain strategic direction and confidence among stakeholders.

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