Company Number: SC701480

Analysis Date: 2025-07-20 17:28 UTC

Financial Health Assessment Report for CJS ULTIMATE BUILDING LTD

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1. Financial Health Score: D

Explanation:
The company exhibits severe signs of financial distress in the most recent financial year (2024), marked by a sharp decline in net assets and overall liquidity compared to prior years. While earlier years showed robust net assets and working capital, the latest figures reveal deteriorating financial "vital signs," indicating a weakened financial condition that requires urgent attention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	8,261	10,016	Slight reduction in long-term investments/assets; relatively stable but declining.
Current Assets	126	62,114	Drastic fall in liquid and short-term assets; signals very low cash or receivables ("dry well").
Current Liabilities	5,969	19,891	Reduced short-term obligations, but still significant relative to current assets.
Net Current Assets (Working Capital)	3,265	43,163	Severe drop from a healthy positive working capital to a minimal margin ("weak pulse").
Net Assets (Equity)	4,556	44,692	Alarmingly reduced shareholder funds, suggesting losses or asset write-downs ("failing heart").
Creditors due after 1 year	5,969	8,486	Long-term debt has decreased but still imposes future obligations.
Average Number of Employees	3	3	Stable workforce size, indicating no immediate reduction in personnel costs.

Additional Observations:

• The drop in current assets from £62k to £126 signals a crisis in liquidity—cash or receivables are nearly exhausted.
• Despite reduced current liabilities, working capital remains critically low, impairing operational flexibility.
• Total net assets declined by nearly 90%, a major red flag for solvency.
• The company remains active with a single director who holds full control, ensuring centralized decision-making but also concentration risk.

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3. Diagnosis: Financial Condition Overview

CJS ULTIMATE BUILDING LTD is currently experiencing severe financial distress, akin to a patient whose vital signs have deteriorated rapidly in the last period. The company’s liquidity has almost vanished, and its net worth has plummeted, indicating possible operational losses, asset impairments, or significant cash outflows that were not replenished.

The company has a "weak pulse" in terms of working capital and an almost "failing heart" in terms of equity, which undermines its ability to meet short-term obligations and invest in growth or recovery. The drastic decline in current assets is particularly concerning, as it points to the company possibly running out of cash or struggling to collect debts.

However, the reduction in liabilities suggests some debt repayments or restructuring occurred, which may provide some relief if managed prudently.

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4. Recommendations: Steps to Improve Financial Wellness

1. Immediate Cash Flow Management:

   • Conduct a thorough cash flow forecast to identify timing mismatches between inflows and outflows.
   • Prioritize collection of outstanding receivables and negotiate extended payment terms with creditors to avoid liquidity crises.

2. Cost Control and Operational Efficiency:

   • Review all expenses, especially fixed costs, to identify opportunities for reduction without impacting core business operations.
   • Evaluate project profitability closely to avoid loss-making jobs.

3. Capital Injection or Financing:

   • Consider seeking additional equity funding from the current shareholder or external investors to restore financial stability.
   • Explore short-term credit facilities to bridge liquidity gaps but with caution to avoid overleveraging.

4. Strategic Business Review:

   • Assess the causes of the financial decline—whether market conditions, pricing, or operational inefficiencies—and implement corrective actions.
   • Evaluate the sustainability of business volumes and client contracts.

5. Regular Financial Monitoring:

   • Establish monthly financial health check-ups ("vital signs") to detect early warning symptoms and address issues before they escalate.

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