Company Number: 13132626

Analysis Date: 2025-07-20 12:04 UTC

Financial Health Assessment for BERJAYJUNDS LTD

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1. Financial Health Score: B

Explanation:
BERJAYJUNDS LTD demonstrates a solid financial position with substantial fixed assets and a consistent net asset base over the past few years. However, there are signs of liquidity tension as current liabilities exceed current assets, resulting in a negative net working capital (net current assets are negative). This indicates some short-term cash flow pressure which requires attention. Overall, the company’s asset base and shareholders’ funds are strong, but the liquidity symptoms prevent a top rating.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	1,692,747	Represents long-term investments in property or equipment — a healthy asset base for stability.
Current Assets	320,560	Short-term assets like cash and receivables — moderate level, but less than current liabilities.
Current Liabilities	450,360	Short-term obligations due within a year — higher than current assets, indicating liquidity risk.
Net Current Assets	-129,800	Negative working capital suggests potential difficulty meeting short-term debts.
Total Assets Less Current Liabilities	1,562,947	Reflects the net value of assets after short-term debts — stable and strong over 3 years.
Net Assets / Shareholders Funds	1,562,947	Equity base is robust, indicating good long-term financial health.
Employees	0	No employees, possibly indicating a holding or investment company, reducing operational cost risk.

Interpretation:

• The fixed assets are stable and significant, suggesting a strong capital base.
• Current liabilities exceed current assets, a symptom of short-term financial strain or tight cash flow.
• Net assets are consistent and healthy, indicating the company is solvent and has a good equity cushion.
• No employees indicate a low operational overhead, common in property holding or investment businesses.

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3. Diagnosis

Symptoms Analysis:

• Liquidity Symptoms: The negative net working capital (current assets less than current liabilities) is a clear "symptom of distress" in liquidity. This means the company may struggle to meet its short-term obligations promptly without relying on additional financing or converting fixed assets into cash.
• Asset Stability: The fixed assets have not changed over the last three years, indicating a stable investment in property or long-term assets, which is a positive "vital sign" of financial stability.
• Solvency: The net assets and shareholders’ funds are strong and stable, showing no signs of erosion in company value or solvency issues. This is reassuring and indicates the company is "financially fit" in the long term.
• Operational Model: With no employees and a focus on real estate letting (SIC 68209), it seems the company operates as a property holding entity, which usually involves less operational complexity but requires careful cash flow management.

Overall Diagnosis:
BERJAYJUNDS LTD is financially stable in terms of net worth and asset base but exhibits liquidity constraints that could hamper day-to-day operations or short-term obligations. This is akin to a patient with strong vital organs but experiencing dehydration or electrolyte imbalance — treatable but needing attention.

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4. Recommendations

1. Improve Liquidity Management:

   • Explore options to increase current assets (e.g., accelerate rent collections, reduce receivables period).
   • Negotiate longer payment terms with creditors to ease short-term cash outflows.
   • Consider short-term financing or overdraft facilities to cover working capital deficits temporarily.

2. Review Asset Utilization:

   • Assess the possibility of leveraging fixed assets (property) through refinancing or sale and leaseback to boost cash reserves without losing operational control.

3. Cash Flow Forecasting:

   • Implement detailed and regular cash flow forecasting to anticipate liquidity gaps before they become critical.

4. Operational Efficiency:

   • Since there are no employees, maintain tight control on any operational expenses to avoid unnecessary cash outflows.

5. Monitor Creditors and Debtors:

   • Keep a close eye on creditor aging and debtor collections to prevent worsening of liquidity symptoms.

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