JACKSON-DE WIT CONSULTANCY LTD

Executive Summary

Jackson-de Wit Consultancy Ltd maintains a solid and liquid financial position typical for a young consultancy firm, with sufficient cash to cover liabilities. However, rising current liabilities and declining equity signal early warning signs that require proactive management to sustain financial health. Focused efforts on managing short-term debts, enhancing profitability, and building reserves will support a robust financial outlook.

JACKSON-DE WIT CONSULTANCY LTD - Analysis Report

Company Number: 14356579

Analysis Date: 2025-07-20 15:18 UTC

Financial Health Assessment for JACKSON-DE WIT CONSULTANCY LTD

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1. Financial Health Score: B

Explanation:
Jackson-de Wit Consultancy Ltd demonstrates a generally stable financial position with positive net current assets and shareholders’ funds, reflecting a "healthy cash flow" environment typical for a small consultancy business. However, the noticeable decline in net current assets and shareholders’ funds from 2023 to 2024 signals early "symptoms of financial stress" that warrant attentive management to avoid deterioration.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Cash at bank	53,813	43,313	Strong cash position; "healthy liquidity" to meet short-term obligations.
Current Liabilities	32,946	16,709	Increased liabilities could indicate higher short-term obligations or deferred payments, a potential "stress symptom."
Net Current Assets	20,867	26,604	Positive working capital ("buffer") but reduced by ~22%; needs monitoring.
Shareholders’ Funds	20,867	26,604	Equity decreased, indicating reduced retained earnings or possible losses.
Employee Count	1	1	Very lean operation; low overhead but dependent on key personnel.
Company Age	~2 years	N/A	Early stage business; naturally volatile financials expected.

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3. Diagnosis

The company exhibits a solid liquidity base, with cash reserves comfortably exceeding current liabilities—a key "vital sign" of financial health indicating the company can cover immediate debts. However, the doubling of current liabilities year-over-year and concurrent drop in net current assets and equity suggests emerging "symptoms of distress." This may reflect increased tax or social security liabilities (noted as a significant component of current liabilities), possibly due to increased profitability or delayed payments.

The absence of long-term assets or debts simplifies the capital structure but also indicates limited asset backing. Shareholders’ funds remain positive, supporting a stable financial foundation, but the decline may highlight early-stage operational pressures or reinvestment needs.

Given the company is newly incorporated (September 2022) and operates in management consultancy (SIC 70229), some financial fluctuations are typical in the growth phase. The company currently maintains "healthy cash flow" but must keep a close eye on liabilities and profitability margins.

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4. Recommendations

• Manage Current Liabilities: Investigate the nature of the increased liabilities, particularly taxation and social security components. Ensure timely payments to avoid penalties and interest that could exacerbate cash flow stress.
• Improve Profitability: Although detailed income data is missing, the decrease in retained earnings suggests profitability pressures. Review pricing, cost control, and client acquisition strategies to improve margins.
• Cash Flow Monitoring: Maintain strong cash flow forecasting to anticipate peaks in liabilities and avoid a liquidity crunch.
• Build Reserves: Aim to rebuild net current assets and equity through retained earnings to strengthen the "financial immunity" against external shocks.
• Consider Audit or Review: Though exempt from audit, periodic external reviews could provide assurance and identify financial risks early.
• Succession Planning: With only one employee/director, consider risk mitigation strategies for key person dependency, including documented processes and potential support staff.

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