J HEALTHCARE DATA SOLUTIONS LTD

Executive Summary

J Healthcare Data Solutions Ltd exhibits a stable financial position with positive net assets and working capital, but significant cash depletion indicates emerging liquidity stress. The company should prioritize cash flow management and profitability improvements to strengthen its financial health and ensure sustainable operations. Early proactive measures will help maintain financial stability and support future growth.

J HEALTHCARE DATA SOLUTIONS LTD - Analysis Report

Company Number: 13909675

Analysis Date: 2025-07-29 20:50 UTC

Financial Health Assessment: J HEALTHCARE DATA SOLUTIONS LTD (as of 29 February 2024)

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1. Financial Health Score: B-

Explanation:
J Healthcare Data Solutions Ltd shows a generally stable financial position with positive net assets and working capital. However, signs of cash depletion and declining net assets over the last financial year suggest emerging liquidity concerns that require attention. This company is financially "fairly healthy" but exhibits early "symptoms" of cash flow stress that could worsen if not managed.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Cash at Bank	13,376	29,101	Cash reserves halved indicating weakening liquidity.
Current Liabilities	3,013	10,028	Current liabilities significantly reduced, easing short-term obligations.
Net Current Assets	10,363	19,073	Positive working capital but declining, signals reduced buffer to cover short-term debts.
Net Assets	12,786	22,303	Net assets declined by ~43%, indicating reduced overall financial strength.
Tangible Fixed Assets	2,423	3,230	Slight reduction, showing asset depreciation or disposals.
Shareholders’ Funds	12,786	22,303	Declining equity, possibly due to losses or withdrawals.
Employees	1	1	Very small team, low overhead but limited scale.

Interpretation:

• Cash Flow: The "heartbeat" of the company—cash reserves—have dropped sharply by over 50%, a critical symptom of potential liquidity stress.
• Working Capital: Though still positive, the shrinking net current assets hint at a less robust buffer against short-term liabilities.
• Equity Position: The decline in net assets suggests the company may be using reserves or incurring losses, weakening its financial "immune system."
• Liabilities: Reduced current liabilities is a positive sign, possibly due to better creditor management or lower operational activity.

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3. Diagnosis: Financial Condition Overview

J Healthcare Data Solutions Ltd is a young private limited company operating in business support services. It currently maintains a positive net asset position and working capital, indicating the company is solvent and can cover its short-term obligations.

However, the "symptoms" observed include:

• Significant cash depletion: Cash on hand has halved from the previous year, which can be likened to a patient losing vital fluids. This reduces the company's ability to manage unforeseen expenses or invest in growth.
• Decline in net assets and shareholder funds: This suggests the company may be experiencing operational losses or has distributed funds to owners. It could indicate an underlying operational inefficiency or strategic cash usage.
• Stable but minimal staffing: With just one employee (likely the director), the company operates at a minimal scale, which could limit growth prospects but also control costs closely.

Overall, the company is currently financially stable but shows early "warning signs" that could develop into more serious liquidity or solvency issues if not addressed.

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4. Recommendations for Financial Wellness Improvement

1. Improve Cash Flow Management:

   • Tighten credit control and accelerate debtor collections to rebuild cash reserves.
   • Review payment terms with suppliers to optimize cash outflows without damaging relationships.

2. Analyze Profitability Drivers:

   • Conduct a detailed review of revenues and expenses to identify loss-making activities or inefficiencies.
   • Consider cost reduction or process improvements to restore profitability and strengthen equity.

3. Plan for Working Capital Needs:

   • Maintain positive net current assets by monitoring short-term liabilities closely.
   • Avoid overreliance on short-term borrowings which can exacerbate liquidity issues.

4. Strategic Growth and Investment:

   • Explore opportunities to increase turnover through new contracts or service offerings, given the company's relatively low asset base and small team.
   • Consider investment in technology or partnerships to enhance service capacity without large capital outlays.

5. Regular Financial Monitoring:

   • Implement monthly cash flow forecasting to detect liquidity issues early.
   • Prepare management accounts regularly to assess financial health dynamically rather than annually.

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Medical Analogy Summary

J Healthcare Data Solutions Ltd currently has a stable but weakened financial pulse—the patient is breathing steadily but has lost some vital fluids (cash). The company’s financial immune system (net assets and equity) is under strain but not yet critically ill. Early intervention focusing on restoring cash flow and improving profitability will help prevent the condition from deteriorating into a more serious financial illness.

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