JA PROJECTS LTD

Executive Summary

JA PROJECTS LTD is experiencing financial distress characterized by negative net assets and working capital deficits, signaling liquidity challenges and undercapitalization. While the company remains operational and compliant with filing requirements, immediate actions such as capital injection and cash flow management are essential to stabilize its financial health and improve future outlook.

JA PROJECTS LTD - Analysis Report

Company Number: 14384864

Analysis Date: 2025-07-29 12:25 UTC

Financial Health Assessment for JA PROJECTS LTD

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1. Financial Health Score: D

Explanation:
JA PROJECTS LTD exhibits significant financial distress signals, notably persistent negative net assets and net current liabilities over the past financial years. The company’s net asset position is in the red (£-313 in 2024), indicating that liabilities exceed assets—akin to a patient operating with dangerously low vital signs. This score reflects a weak financial condition that requires urgent attention to avoid further deterioration.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	397	0	Minimal investment in long-term assets; stable but very low.
Current Assets	286	127	Low short-term assets; modest improvement but insufficient.
Current Liabilities	996	540	High short-term debts that the company must pay soon.
Net Current Assets	-710	-413	Negative working capital “symptom of cash flow stress.”
Net Assets (Shareholders’ Funds)	-313	-413	Negative equity; company owes more than it owns.
Number of Employees	1	1	Micro entity with minimal staff overhead.

Interpretation:

• The negative net current assets indicate the company may struggle to meet short-term obligations, a classic symptom of liquidity distress.
• Negative net assets (shareholders’ funds) show accumulated losses or undercapitalization, signaling weakened financial resilience.
• Fixed assets are minimal but stable, reflecting limited investment in long-term capacity.
• The small scale (micro entity, 1 employee) suggests limited operational complexity but also constrained resources.

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3. Diagnosis: Financial Condition Analysis

JA PROJECTS LTD is currently in a precarious financial state resembling a patient with chronic weakness. It has been running with negative net assets since incorporation, indicating accumulated losses or insufficient capital injections. The persistent negative working capital ("cash flow symptoms") signals difficulty in covering short-term debts and potential liquidity crises.

The company’s micro entity status and sole director/shareholder (Mrs. Julia Aaltonen) imply decision-making is centralized, which can allow for agile responses but also concentrates risk. The sector classification in human resources provision and employment placement suggests reliance on service contracts and possibly cyclical business conditions.

While the company remains active and filing accounts and returns on time (no overdue filings), the ongoing negative equity and net current liabilities are concerning. Without improvements in asset base or reduction of liabilities, the company risks insolvency.

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4. Recommendations: Steps to Improve Financial Wellness

1. Improve Cash Flow Management:

   • Prioritize collection of receivables and reduce short-term liabilities where possible.
   • Consider negotiating extended payment terms with creditors to ease liquidity pressure.

2. Capital Injection:

   • The sole shareholder should consider injecting additional equity or securing external investment to strengthen the balance sheet and move net assets positive.

3. Cost Control and Revenue Growth:

   • Implement strict cost controls to reduce overheads.
   • Seek to grow revenues through new contracts or diversification within HR services to improve profitability.

4. Financial Monitoring:

   • Establish regular financial health check-ups (monthly cash flow forecasts, management accounts) to detect early symptoms of distress.
   • Engage with a financial advisor to explore restructuring options if necessary.

5. Contingency Planning:

   • Prepare for scenarios where liabilities cannot be met immediately. Early dialogue with creditors and suppliers can prevent escalation.

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Medical Analogy Summary:
JA PROJECTS LTD is currently exhibiting "symptoms" of financial distress—negative net assets and working capital akin to a patient with weakened immunity and insufficient resources to fight infection. Without prompt "treatment" in the form of capital support and cash flow improvement, the prognosis is guarded with risk of insolvency.

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