C J LEWIS LIMITED

Executive Summary

C J Lewis Limited demonstrates a stable financial position with strong liquidity and positive net assets, typical of a micro-entity in early growth. Although recent declines in current assets and net assets warrant monitoring, the company’s zero short-term liabilities and controlled governance provide a solid foundation. Proactive cash flow management and cost control are recommended to sustain and improve financial health.

C J LEWIS LIMITED - Analysis Report

Company Number: 13156281

Analysis Date: 2025-07-29 21:01 UTC

Financial Health Assessment of C J LEWIS LIMITED

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1. Financial Health Score: B-

Explanation:
C J Lewis Limited shows a generally stable financial position with positive net assets and a healthy liquidity position as of the latest financial year. However, there are some early warning signs such as declining total net assets and current assets compared to the previous year. The company exhibits a solid cash position with no current liabilities at the latest year-end, which is a positive "vital sign." Given its micro entity status and relatively short trading history since incorporation in 2021, the company is financially sound but should carefully monitor trends to maintain health.

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2. Key Vital Signs

Metric	2025 (£)	2024 (£)	Interpretation
Fixed Assets	323	431	Slight decrease; minor impact due to small asset base, not critical.
Current Assets	2,371	4,295	Significant drop in liquid assets; may indicate reduced cash reserves or receivables.
Current Liabilities	0	696	Eliminated short-term debts, a strong positive sign reflecting good liquidity management.
Net Current Assets	2,371	3,599	Positive working capital with a decline; still healthy but trend warrants attention.
Net Assets (Shareholders' Funds)	2,694	4,030	Decreased shareholder equity; could indicate reduced retained earnings or distributions.
Share Capital	100	100	Stable; minimal capital base typical of micro entity.
Employees	0	0	No employees; company likely owner-operated or uses subcontractors.

Interpretation of Vital Signs:

• The company’s "healthy cash flow" is suggested by zero current liabilities and positive net current assets, indicating it can comfortably cover its short-term obligations.
• However, the "symptoms of distress" appear in the form of declining current assets and net assets, which could suggest lower revenue collection, increased expenses, or asset disposals.
• The absence of employees suggests a lean operational model, reducing fixed overhead costs but possibly limiting growth capacity.

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3. Diagnosis

C J Lewis Limited’s financial health is currently stable but cautious. The company benefits from:

• A strong liquidity position: No current liabilities and positive net current assets mean it can meet short-term obligations without strain.
• Positive net assets: Reflecting the company’s ability to cover its debts and maintain shareholder equity.
• Clear ownership and control: One director and shareholder with full control simplifies governance and decision-making.

However, the downward trend in net assets and current assets signals a need for vigilance. Potential causes might be reduced business volumes, timing differences in receivables/payables, or reinvestment decisions. The company has not filed a profit and loss account publicly, but the drop in net assets may reflect lower profitability or distributions.

Given this is a micro entity, with limited filing requirements and no employees, it is likely in a start-up or early growth phase, which often experiences fluctuations in cash flow and asset levels.

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4. Recommendations

To maintain and improve financial wellness, the following actions are advised:

1. Cash Flow Monitoring:
   Regularly review cash inflows and outflows to ensure that the reduction in current assets is not due to delayed payments or rising expenses. Aim to rebuild cash reserves to buffer against unforeseen expenses.

2. Profitability Analysis:
   Although profit and loss data is not publicly available, internally track revenues and costs closely to identify any erosion in margins. Consider budgeting and forecasting to plan for improved financial outcomes.

3. Cost Control:
   With zero employees, fixed costs may be low, but ensure that all expenses are necessary and add value. Explore cost-saving measures without compromising service quality.

4. Asset Management:
   Review fixed assets and consider whether disposals or investments are aligned with business strategy. Asset utilization should support operational efficiency.

5. Growth Strategy:
   Plan for sustainable growth, potentially including hiring when financially viable, expanding client base, or diversifying services to increase revenue streams.

6. Compliance and Reporting:
   Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing. Consider voluntary audit or review if complexity increases.

7. Engage Professional Advice:
   Leverage the expertise of the director’s accounting background to implement robust internal controls and financial planning.

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