CJR SPECIAL PROJECTS LIMITED

Executive Summary

CJR Special Projects Limited exhibits a solid financial foundation typical of a start-up, with positive liquidity and a healthy equity base. While the company's scale is modest and reliant on group-related transactions, its financial "vital signs" show no immediate distress. To ensure sustainable growth, the company should focus on broadening revenue sources, enhancing financial oversight, and prudent working capital management.

CJR SPECIAL PROJECTS LIMITED - Analysis Report

Company Number: 15055413

Analysis Date: 2025-07-20 13:30 UTC

Financial Health Assessment for CJR Special Projects Limited

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1. Financial Health Score: B

Explanation:
CJR Special Projects Limited demonstrates a solid start with positive net current assets and shareholder funds reflecting initial capital injection and prudent management of liabilities. However, as a newly incorporated business with limited financial history and modest scale, the score reflects a generally healthy but nascent financial position with room to grow and strengthen.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Debtors (Accounts Receivable)	42,988	Indicates funds owed to the company, primarily from group undertakings, showing internal transactions.
Current Liabilities	8,290	Short-term obligations due within one year, including taxation and social security.
Net Current Assets	34,698	Current assets minus current liabilities; positive working capital suggests healthy liquidity.
Total Assets Less Current Liabilities	34,698	Reflects company's net asset base after current liabilities, indicating financial buffer.
Shareholders' Funds	34,698	Equity held by shareholders, showing initial capital and retained earnings.
Number of Employees	1	Very small workforce, typical for a start-up or micro company.

Interpretation of Vital Signs:

• Healthy cash flow symptom: Positive net current assets indicate the company can cover its short-term debts comfortably, a sign of liquidity health.
• Capital infusion: The equity base shows initial shareholder investment and some retained earnings, supporting solvency.
• Limited scale: With just one employee and limited operational data, business activity is in an early stage, requiring monitoring.
• Group exposure: Debtors are owed by related parties, which entails intercompany risk but also potential support.

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3. Diagnosis: Overall Financial Condition

CJR Special Projects Limited is in the early developmental phase, exhibiting symptoms of financial stability typical for a newly formed company. The balance sheet reflects a healthy liquidity position with net current assets well above liabilities, akin to a patient with a strong pulse and clear vital signs. The capital structure is sound, with shareholders’ funds fully supporting the asset base, indicating no over-leverage or distress signals.

However, the absence of an income statement (due to small company exemptions) limits deeper insight into profitability, cash generation from operations, and cost management. The company’s reliance on amounts owed by group undertakings suggests its operational independence and cash flow may depend on related entities.

The risk factors ("symptoms of potential distress") to watch include limited operational scale and lack of diversified revenue streams at this stage. The small workforce and limited financial history mean the company must build resilience through operational growth and enhanced financial performance metrics.

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4. Recommendations

To improve financial wellness and ensure robust growth, CJR Special Projects Limited should consider the following actions:

1. Build Operational Revenue Streams:
   Develop independent commercial activity beyond group transactions to diversify income and reduce related party dependence.

2. Enhance Financial Reporting:
   Even if exempt, voluntarily preparing detailed management accounts including profit and loss statements will help diagnose operational health and guide strategy.

3. Monitor Working Capital Regularly:
   Maintain healthy liquidity by managing debtor collections and controlling liabilities to avoid cash flow strain.

4. Plan for Growth:
   Strategically increase workforce and operational capacity aligned with business expansion to avoid "growth shock" and maintain financial stability.

5. Risk Management:
   Establish contingency plans for potential delays in group payments or market downturns, ensuring the company’s "immune system" can respond to external shocks.

6. Engage Professional Advice:
   Regular consultation with financial advisors can optimize tax planning, funding strategies, and compliance, safeguarding long-term financial health.

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