BJS ENGINEERING LTD

Executive Summary

BJS ENGINEERING LTD shows a healthy and improving financial position with strong liquidity, growing equity, and prudent asset investment. The primary caution is the rise in debtors, which should be managed carefully to maintain cash flow health. Overall, the company’s financial “vital signs” suggest a stable and growing business well-positioned for sustainable development.

BJS ENGINEERING LTD - Analysis Report

Company Number: 13978683

Analysis Date: 2025-07-29 19:00 UTC

Financial Health Assessment of BJS ENGINEERING LTD

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1. Financial Health Score: B+

Explanation:
BJS ENGINEERING LTD demonstrates a solid financial foundation with positive net assets, growing shareholder funds, and healthy working capital. The company is young (incorporated in 2022) but has shown a steady improvement in its financial position over the last two years. The score B+ reflects good financial health with room for improvement in liquidity management and asset utilisation.

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2. Key Vital Signs

Vital Sign	2024 (£)	2023 (£)	Interpretation
Current Assets	45,493	28,172	Increased current assets indicate improved liquidity and ability to meet short-term obligations.
Cash	25,913	21,002	Healthy cash balance supports operational flexibility; a positive “pulse” for day-to-day needs.
Debtors	19,580	6,300	Debtors have significantly increased, signaling growing sales but also potential risk in collections.
Current Liabilities	23,770	15,612	Current liabilities have risen but remain covered by current assets, showing manageable short-term debt.
Net Current Assets (Working Capital)	21,723	11,690	Positive and growing working capital signals good operational liquidity “blood flow.”
Net Assets (Equity)	23,756	11,974	Equity has nearly doubled, indicating retained earnings and overall business growth.
Tangible Fixed Assets	2,769	350	Increase suggests investment in long-term operational capacity, a “strengthening of bones.”
Number of Employees	1	1	Stable headcount; small size consistent with micro/small company profile.

Additional Notes:

• The company is exempt from audit under small company rules, which is typical for micro or small private limited companies.
• Director Mr. Bradley James Spray holds 75-100% control, indicating clear leadership and decision-making authority.
• The company operates in a specialized sector: urban planning and landscape architectural activities (SIC 71112).

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3. Diagnosis: Financial Condition Assessment

Liquidity:
The company exhibits a healthy liquidity position with current assets nearly double its current liabilities in 2024, indicating a strong ability to settle short-term obligations. The cash reserves provide a comfortable buffer, reducing the risk of cash flow distress.

Profitability & Growth:
Though profit and loss details are not provided, the growth in retained earnings (profit and loss reserves) from £11,874 to £23,656 suggests the company is profitable and retaining earnings effectively. The investment in tangible fixed assets points to expansion or upgrading of operational capacity.

Working Capital Management:
The substantial increase in debtors could be a symptom of extended credit terms or slower collections. While this supports revenue growth, it is a “symptom” that requires monitoring to avoid cash flow tightening.

Capital Structure & Solvency:
Net assets have doubled, reflecting solid equity financing without reliance on external debt. The company’s balance sheet “bones” are strong with no indication of over-leverage or insolvency risk.

Operational Scale:
With only one employee (likely the director), the company is very small but appears efficiently managed given the financial improvements in two years.

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4. Recommendations for Financial Wellness Improvement

1. Enhance Debtor Management:

   • Implement or strengthen credit control procedures to reduce debtor days and prevent cash flow bottlenecks.
   • Consider offering early payment incentives or stricter credit terms to improve cash conversion cycle.

2. Monitor Cash Flow Trends:

   • Regular cash flow forecasting to ensure liquidity remains robust, especially given increasing liabilities.

3. Review Asset Utilization:

   • Ensure tangible fixed assets are contributing effectively to revenue generation; avoid over-investment without clear ROI.

4. Plan for Growth:

   • As the company grows, consider scaling workforce or outsourcing to manage increased operational demands efficiently.

5. Maintain Compliance & Reporting:

   • Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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