CJPADPAR LTD

Executive Summary

CJPADPAR LTD is financially healthy with strong liquidity, positive net assets, and consistent equity growth. The company’s low liabilities and solid working capital reflect good financial management typical of a stable micro-entity consultancy. Recommendations focus on cautious growth, maintaining cash flow, and enhancing asset base to support future expansion.

CJPADPAR LTD - Analysis Report

Company Number: 12992399

Analysis Date: 2025-07-20 14:29 UTC

Financial Health Assessment of CJPADPAR LTD

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1. Financial Health Score: A-

Explanation:
CJPADPAR LTD demonstrates a strong financial position for a micro-entity, with healthy net assets and positive working capital trends over the last five years. The company maintains low liabilities relative to current assets and shows stability in shareholder funds. The slight reduction in fixed assets and current assets in the latest year is not alarming given the overall asset base and liquidity. The absence of audit requirements and the small size of the company are consistent with its micro-entity classification.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£91	Minimal long-term investment, typical for a consultancy.
Current Assets	£64,439	Strong liquidity position; mainly cash or receivables.
Current Liabilities	£6,665	Low short-term obligations, manageable with current assets.
Net Current Assets	£57,774	Positive working capital indicates good short-term financial health.
Net Assets (Shareholders’ Funds)	£57,865	Solid net worth reflecting retained earnings and equity.
Share Capital	£1.00	Nominal share capital, common in small private companies.
Employees	1 (Director)	Small team size consistent with micro-entity status.

Interpretation:

• Healthy cash flow indicators: The company’s current assets well exceed current liabilities, signaling no immediate liquidity stress and the ability to meet short-term obligations comfortably.
• Stable equity base: Shareholders’ funds have grown steadily from £13,312 in 2020 to £57,865 in 2024, showing retained profitability or capital injections contributing to financial strength.
• Minimal fixed assets: Reflects the service nature of the business (management consultancy), relying more on intellectual capital than physical assets.
• No overdue filings or compliance issues: Suggests good governance and regulatory compliance, important for sustainable operations.

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3. Diagnosis

CJPADPAR LTD exhibits the "symptoms" of a financially healthy micro-entity. The strong net current assets and shareholders’ funds are akin to a patient with stable vital signs and no signs of distress. The business maintains a clean balance sheet with minimal liabilities, indicating no financial strain or over-leverage. The consistency in current assets and low liabilities suggests the company has good operational control and cash management.

However, the relatively low fixed assets and minimal share capital imply limited scope for rapid expansion or heavy investment without external funding. The company’s single employee (the director) and micro classification mean it is a small-scale operation, likely reliant on the expertise and involvement of the director alone.

There are no red flags such as high debt levels, negative net assets, or compliance lapses. The company’s financial "pulse" is steady and the "immune system" (equity base) is strong. The management consultancy sector often operates with low capital intensity, so this profile fits the industry norms.

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4. Recommendations

• Maintain strong cash flow management: Continue to ensure that current assets remain sufficient to cover liabilities to avoid liquidity stress.
• Build financial reserves cautiously: Retained earnings should be prudently managed to provide a buffer for unexpected expenses or downturns.
• Consider diversification of assets: While fixed assets are low, consider small investments in technology or intellectual property that can enhance service delivery or efficiency.
• Prepare for growth: If expansion is a goal, plan for incremental increases in staff or capital to avoid over-extension. This might include exploring external funding options or partnerships.
• Ongoing compliance vigilance: Maintain timely filings and governance to avoid penalties or reputational risks.
• Document profit and loss in future accounts: Including a P&L statement, even if not mandatory, can provide better insight into operational performance and facilitate stakeholder understanding.

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