Company Number: 15260182

Analysis Date: 2025-07-20 18:25 UTC

Financial Health Assessment for CJO ROOTS LTD as of 30 November 2024

---

1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with negative net assets (-£1,558) and significant long-term liabilities exceeding total assets. Despite having fixed assets on the books, the company's current liquidity position is very weak. This indicates an unhealthy financial state akin to a patient with critical symptoms requiring immediate intervention.

---

2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£238,791	Represents long-term investments or property, a solid base.
Current Assets	£68	Extremely low liquidity—"starving cash flow."
Current Liabilities	£103,239	Very high short-term debts compared to current assets.
Net Current Assets (Working Capital)	-£103,171	Negative working capital—a "symptom of distress" in daily operations.
Creditors Due After One Year	£137,178	High long-term liabilities exceeding assets.
Net Assets	-£1,558	Negative net worth—"critical condition" indicating insolvency risk.
Shareholders Funds	-£1,558	Equity wiped out; shareholders essentially have no buffer.
Employees	0	No staff, possibly minimal operations or early startup phase.

---

3. Diagnosis

The financial "vital signs" reveal that CJO ROOTS LTD is currently in a precarious position. While the company holds significant fixed assets, these are overshadowed by large liabilities both short and long term. The current assets are negligible, indicating a severe liquidity crunch, meaning the company may struggle to meet immediate obligations—this is like a patient with low blood pressure and poor oxygenation.

The negative net assets and shareholders' funds suggest the company is technically insolvent on a balance sheet basis. The absence of employees may imply the company is not yet fully operational or is in a holding phase. Given its incorporation date in late 2023, it may still be in an early development stage, but the financial structure as it stands is unsustainable without capital injection or restructuring.

---

4. Recommendations

• Improve Liquidity: Immediate focus should be on increasing current assets (cash or equivalents) to cover short-term liabilities. This may require new financing, equity injection, or renegotiation of payment terms with creditors.
• Debt Restructuring: Engage with creditors to restructure or extend long-term liabilities to reduce immediate pressure.
• Asset Utilization: Evaluate fixed assets for potential sale or better utilization to generate cash flow.
• Operational Plan: Develop a clear business plan to generate revenue and move from a dormant or startup phase to active trading.
• Financial Monitoring: Implement regular financial health checks to catch early warning signs and adjust course proactively.
• Stakeholder Communication: Transparent communication with shareholders and directors to manage expectations and explore funding options.

---