Company Number: 13099919

Analysis Date: 2025-07-20 14:56 UTC

Financial Health Assessment Report: CROSSJAB LIMITED

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1. Financial Health Score: D

Explanation:
CROSSJAB LIMITED shows signs of financial distress and weakening financial health. The company has persistent net current liabilities and net negative assets over multiple years, indicating that its short-term obligations exceed its liquid assets and overall liabilities surpass its assets. This reflects a company under financial strain with limited cushion for unexpected expenses or downturns.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Fixed Assets	5,120	Low investment in long-term assets, typical for micro retail.
Current Assets	26,967	Declining cash and receivables, reducing liquidity.
Current Liabilities	41,582	High short-term debts compared to assets.
Net Current Assets (Working Capital)	-14,615	Negative; symptoms of liquidity stress.
Total Assets Less Current Liabilities	-9,495	Negative net assets; indicates insolvency risk.
Shareholders’ Funds (Equity)	-9,495	Negative equity; investors’ stake eroded.
Employee Count	2	Very small workforce; micro entity status.
Share Capital	1.00	Minimal share capital, typical micro company.

Interpretation:

• The negative net current assets indicate that the company does not have enough liquid assets to meet its short-term obligations—a classic symptom of liquidity strain.
• Negative shareholders’ funds and net liabilities suggest accumulated losses or debts exceeding assets, a warning sign of underlying financial distress.
• Declining fixed and current assets over the past year signal reduced resource base and possible operational contraction.
• The small size and micro entity classification imply limited scale but also limited financial buffers.

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3. Diagnosis: What the Financial Data Reveals About Business Health

CROSSJAB LIMITED’s financial "vital signs" reveal a company in a precarious state. The persistent negative net current assets and declining total assets highlight ongoing cash flow challenges and an inability to cover debts due within one year. Negative net assets (shareholders’ funds) suggest the company has been running at a loss or has accumulated liabilities beyond its asset base.

This situation is akin to a patient showing chronic symptoms of distress—short-term liquidity issues compounded by a long-term structural weakness in balance sheet strength. The company may be relying on external financing or supplier credit to continue operating, which is not sustainable indefinitely. The micro size and limited capital base reduce the company's resilience to economic shocks or market downturns.

The director has maintained filings on time, which is positive from a governance perspective, but financial health remains fragile.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Improve Working Capital Management:

   • Tighten credit control to accelerate receivables collection and reduce overdue payments.
   • Negotiate extended payment terms with suppliers to ease immediate cash outflows.
   • Consider reducing inventory levels if applicable to free up cash.

2. Strengthen Capital Structure:

   • Inject fresh equity capital or seek shareholder loans to restore positive net assets and improve solvency.
   • Explore options for external funding such as small business loans or grants aimed at micro enterprises.

3. Cost Control and Efficiency:

   • Review operating expenses and overheads; reduce non-essential costs.
   • Optimize staff utilization given the very small workforce.

4. Strategic Review:

   • Assess business model viability and market positioning, especially within the retail sports goods sector.
   • Explore potential for diversification or online sales channels to boost revenue.

5. Regular Monitoring:

   • Implement monthly cash flow forecasting to anticipate liquidity needs.
   • Maintain rigorous financial reporting to spot early warning signs.

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