J C GENERAL BUILDERS LTD

Executive Summary

J C GENERAL BUILDERS LTD shows a solid and improving financial condition with healthy liquidity and growing equity, indicating sound management for a micro-sized builder. While the company carries manageable long-term debt, continued focus on debt control and equity strengthening will support sustainable growth and financial resilience.

J C GENERAL BUILDERS LTD - Analysis Report

Company Number: 13271935

Analysis Date: 2025-07-29 14:16 UTC

Financial Health Assessment of J C GENERAL BUILDERS LTD

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1. Financial Health Score: B

Explanation:
J C GENERAL BUILDERS LTD demonstrates a solid and improving financial position for a micro-entity in the building completion and finishing sector. Key indicators such as net current assets, net assets, and shareholders’ funds have shown consistent growth over the last three years. However, the presence of long-term liabilities and modest equity base relative to liabilities indicate some caution. Overall, the company’s financial health is good but with room for strengthening liquidity and reducing debt.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Fixed Assets	23,939	Investment in long-term assets shows capital expenditure, reflecting growth or asset acquisition.
Current Assets	131,048	Healthy level of liquid and receivable assets to cover short-term obligations.
Current Liabilities	84,007	Short-term debts are significant but covered by current assets, indicating adequate working capital.
Net Current Assets	47,041	Positive working capital ("healthy cash flow buffer") suggests ability to meet short-term debts.
Creditors > 1 Year (Long Term Liabilities)	21,922	Long-term debt needs monitoring; manageable but growing compared to previous year.
Net Assets / Shareholders’ Funds	49,058	Positive and increasing equity base indicating retained earnings and financial stability.
Share Capital	100	Very low nominal share capital; typical for micro companies but equity mainly from retained profits.
Average Number of Employees	2	Small workforce consistent with micro company size.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity & Working Capital:
  The company’s net current assets have grown from £11,127 (2021) to £47,041 (2024), indicating improving liquidity and a "healthy cash flow" position. This means J C GENERAL BUILDERS LTD can comfortably cover short-term debts, reducing risk of financial distress.

• Leverage and Solvency:
  Long-term liabilities increased from £13,422 (2023) to £21,922 (2024), which is a symptom of increased borrowing or deferred payments. While manageable, this "symptom of financial strain" should be monitored to avoid over-leverage.

• Profit Retention and Equity:
  Net assets nearly doubled from £24,171 (2023) to £49,058 (2024), showing retained earnings and reinvestment into the business. This "healthy equity growth" signals profitability and prudent financial management.

• Asset Base:
  The introduction of fixed assets (£23,939 in 2024) from none previously suggests investment in tools, equipment, or property—key for operational capacity and business growth.

• Size and Scale:
  Operating as a micro entity with 2 employees and minimal share capital, the company is small but appears stable within its scale.

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4. Recommendations

• Monitor and Manage Long-Term Debt:
  The rise in long-term liabilities requires careful cash flow forecasting to ensure these debts remain serviceable without straining working capital.

• Strengthen Equity Base:
  Consider strategies to increase share capital or retained earnings to enhance solvency and provide a buffer against potential downturns.

• Optimize Working Capital:
  Maintain or improve current asset turnover and debtor collections to sustain liquidity. Avoid excessive stock or receivables that may tie up cash unnecessarily.

• Capital Investment Review:
  Evaluate the return on fixed assets to confirm that capital expenditures are generating sufficient revenue or operational efficiency.

• Risk Management:
  With a small team, ensure key person risk is mitigated through succession planning or operational documentation to maintain stability.

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