JAF TECHNICAL ENGINEERING SERVICES LTD

Executive Summary

JAF TECHNICAL ENGINEERING SERVICES LTD shows strong initial financial health with positive working capital and net assets indicating good liquidity and solvency. As a newly formed micro-entity in a technical consulting sector, it is positioned well but should focus on prudent cash flow management and gradual reserve building to ensure sustainable growth.

JAF TECHNICAL ENGINEERING SERVICES LTD - Analysis Report

Company Number: 15472414

Analysis Date: 2025-07-29 18:14 UTC

Financial Health Assessment for JAF TECHNICAL ENGINEERING SERVICES LTD

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1. Financial Health Score: B

Explanation:
JAF TECHNICAL ENGINEERING SERVICES LTD, as a newly incorporated micro-entity, shows promising initial financial "vital signs." The company has positive net assets and a healthy working capital position, indicating a stable liquidity situation. However, limited financial history and small scale restrict a higher grade. The "B" reflects good initial health but acknowledges the early stage and potential risks inherent in start-ups.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	2,628	Modest investment in long-term assets, typical for a micro company at start-up phase.
Current Assets	15,420	Adequate short-term assets available, showing liquidity to cover immediate obligations.
Current Liabilities	8,825	Short-term liabilities are manageable relative to current assets.
Net Current Assets	6,595	Positive working capital, a sign of "healthy cash flow" allowing smooth day-to-day operations.
Total Assets Less Current Liabilities	9,223	Reflects overall asset base after covering short-term debts.
Net Assets / Shareholders’ Funds	8,455	Positive equity indicates the business is solvent and not over-leveraged.
Average Employees	1	Lean staffing consistent with micro-company status and cost containment.

Vital Signs Interpretation:
The company’s balance sheet reveals a solid liquidity position with net current assets comfortably positive, meaning it can meet short-term obligations without distress. Net assets are positive, showing the company is solvent and has not accumulated debts exceeding its assets at this early stage. The small fixed asset base is appropriate for a consulting/engineering service firm that likely relies more on intellectual capital than heavy equipment.

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3. Diagnosis

Underlying Business Health:
JAF TECHNICAL ENGINEERING SERVICES LTD presents "symptoms of financial stability" typical of a well-managed start-up. The presence of positive working capital and net assets are good indicators that the company is not experiencing financial stress. The single director and sole significant controller—Mr. Julian Alexander Fedak—suggest a closely held business with clear governance, which reduces complexity but may require vigilance for succession or capacity risks.

Early Stage Considerations:
Being incorporated in February 2024, the company’s financial history is very limited. This means while the financial "vital signs" are currently healthy, there is little track record to confirm sustainable profitability or resilience against market fluctuations. The micro-entity exemption from audit is appropriate but limits external assurance.

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4. Recommendations

To maintain and improve financial wellness, consider the following actions:

• Cash Flow Monitoring: Maintain vigilant monitoring of cash flow to ensure liquidity remains "healthy," especially as the company grows or takes on new projects.
• Build Financial Reserves: Aim to increase retained earnings or reserves from profits to cushion against future uncertainties.
• Diversify Client Base: Avoid concentration risk by expanding client portfolio to stabilize revenue streams.
• Formalize Financial Controls: Even as a micro-company, implementing basic budgeting and forecasting can help diagnose early signs of financial distress.
• Plan for Growth: As the company matures, consider investing in scalable assets or tools that enhance productivity without overextending resources.
• Compliance and Reporting: Keep up-to-date with filing deadlines and consider voluntary audits or reviews to enhance credibility with lenders or clients.

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