Company Number: 13557989

Analysis Date: 2025-07-19 12:55 UTC

Financial Health Assessment: J3 INS LIMITED (as of 30 June 2024)

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1. Financial Health Score: B

J3 INS LIMITED demonstrates a solid and improving financial position with significant growth in net assets and working capital over two years. The company shows healthy liquidity and increasing shareholder equity, indicating good financial vitality. However, the presence of a substantial creditor balance falling due after more than one year, reported as a negative current liability (£382,402), requires closer scrutiny to rule out potential financial distress symptoms.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	273,287	127,889	Strong growth in liquid and short-term assets, indicating improved resource availability.
Cash at Bank	96,679	52,498	Healthy increase in cash, supporting liquidity and operational flexibility.
Debtors	176,608	75,391	Growing receivables; suggests rising sales but requires efficient collections management.
Current Liabilities	34,834	23,671	Moderate increase; manageable relative to current assets (current ratio >7.8 in 2024).
Creditors (Long-term)	(382,402)	58,708	Negative figure suggests possible data classification or reporting anomaly; needs clarification.
Net Current Assets (Working Capital)	238,453	104,218	Significant improvement indicating more funds to cover short-term obligations.
Net Assets	620,855	45,510	Remarkable increase, reflecting strong retained earnings and equity injection.
Shareholders' Funds	620,855	45,510	Mirrors net assets; represents owners’ stake in the company, showing healthy growth.
Average Number of Employees	10	7	Growth in workforce aligns with business expansion.

Interpretation of Vital Signs:

• Liquidity ("Healthy cash flow"): Current assets and cash balances have more than doubled, which indicates a robust cash position. The company is well-placed to meet short-term obligations.
• Working Capital ("Buffer to meet day-to-day expenses"): Strong positive net current assets reflect a comfortable buffer.
• Equity Growth ("Reserves building"): Net assets have increased over tenfold, indicating profitable operations or capital injection.
• Receivables ("Potential symptom"): Debtors have risen sharply, which may signal increased sales but also poses a risk if collection is slow.
• Long-term Creditors ("Symptom of distress or reporting issue"): The large negative figure for creditors due after more than one year is unusual and should be clarified; it could indicate deferred income or accounting classification issues rather than immediate financial distress.

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3. Diagnosis

J3 INS LIMITED appears financially healthy with strong liquidity and growing equity, suggesting successful business expansion and effective capital management. The company’s ability to grow net assets significantly within a short period is a positive sign of profitability or capital infusion.

The primary "symptom" to investigate further is the unusual negative long-term creditor figure (£382,402). This could be an accounting classification issue (e.g., deferred income, a loan repayment reclassification, or a data entry error) rather than a direct symptom of financial distress. If this figure represents deferred income, it is a liability but also a sign of advanced customer payments, which can enhance liquidity.

The rising debtor balance is a sign of increased sales but warrants attention to ensure it does not lead to cash flow constraints.

Overall, the company is in good financial health, akin to a patient with strong vitals but requiring monitoring of certain anomalies (like the long-term creditor balance).

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4. Recommendations

• Clarify Long-term Creditors: Engage with the accounting team or auditors to understand the nature of the large negative creditor balance. Confirm whether this is deferred income or a reporting anomaly.
• Improve Debtor Management: Monitor accounts receivable closely to ensure timely collections. Consider implementing stricter credit control measures if necessary to maintain healthy cash flow.
• Maintain Strong Liquidity: Continue to monitor cash balances and working capital to sustain operational flexibility.
• Plan for Growth: With an increasing workforce and asset base, ensure business systems and controls scale appropriately to avoid operational strain.
• Regular Financial Review: Schedule periodic financial health checks to detect any emerging symptoms early and adjust business strategy accordingly.

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