JAMES ANDREW CROOK ENGINEERING LTD

Executive Summary

JAMES ANDREW CROOK ENGINEERING LTD exhibits a healthy and improving financial position, characterized by strong liquidity, growing equity, and low liabilities, typical for a micro-sized engineering consultancy. The company’s financial "vital signs" suggest stability and sound operations, with recommendations focused on cash flow monitoring and strategic growth to sustain its upward trajectory.

JAMES ANDREW CROOK ENGINEERING LTD - Analysis Report

Company Number: 13972380

Analysis Date: 2025-07-29 20:06 UTC

Financial Health Assessment Report

Company: JAMES ANDREW CROOK ENGINEERING LTD
Assessment Date: 31 March 2024
Industry: Engineering related scientific and technical consulting activities (SIC 71122)
Company Size: Micro entity

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1. Financial Health Score: B+

Explanation:
The company demonstrates a solid and improving financial position with healthy net current assets and growing net assets over the reported periods. The balance sheet shows strong liquidity and positive equity, indicating good financial stability for a micro entity in its second full year of operations. There is room for improvement in fixed asset management and operational cash flow optimization, but no immediate signs of distress.

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2. Key Vital Signs

Metric	2024	2023	Interpretation
Fixed Assets	£1,853	£2,769	Slight decrease; low fixed asset base typical for consulting business, indicating light capital intensity.
Current Assets	£14,925	£10,562	Increased by ~41%; indicates strong liquidity and ability to cover short-term needs.
Current Liabilities	£233	£3,467	Significant reduction; greatly improved short-term solvency and reduced financial stress.
Net Current Assets (Working Capital)	£14,692	£7,671	Excellent liquidity position; shows ample short-term buffer to meet obligations.
Total Net Assets (Equity)	£16,545	£10,440	Growth of 58%; signals retained earnings or capital injections strengthening the financial base.
Shareholders Funds	£16,545	£10,440	Equal to net assets; no long-term debt, indicating all financing from equity.
Average Number of Employees	1	1	Reflects micro entity scale; manageable overheads and operational complexity.

Interpretation:
The company’s “vital signs” show a healthy financial pulse: increasing assets, very low liabilities, and strong equity growth. The sharp fall in current liabilities is a key symptom of improved financial management or reduced short-term debts. The modest fixed assets base aligns with an engineering consulting firm relying on expertise rather than heavy equipment.

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3. Diagnosis

Financial Condition:
JAMES ANDREW CROOK ENGINEERING LTD is in a robust financial condition for a micro-sized consulting firm in its infancy. The company shows a healthy cash flow position implied by the strong net current assets and extremely low current liabilities. The equity base has expanded significantly, suggesting either profitable operations or capital contributions. The absence of long-term debt or provisions further supports a clean balance sheet.

Underlying Business Health:

• Liquidity: Excellent; the company can easily meet short-term obligations, reducing risk of operational disruptions.
• Solvency: Strong; positive net assets and shareholders’ funds indicate no overreliance on external financing.
• Operational Scale: Small but stable, with a consistent employee count, implying controlled cost structures.
• Asset Management: Fixed assets are low and have decreased slightly; this is typical for a service-based business and does not currently impair operations.

There are no symptoms of financial distress such as overdue filings, creditor pressure, or dwindling equity. The company’s status is active and filings are up to date.

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4. Recommendations

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

• Monitor Cash Flow: Even with healthy net current assets, ensure ongoing cash generation from operations remains positive to avoid liquidity shocks. Implement monthly cash flow forecasts.
• Optimize Working Capital: With large current assets, review debtor collection periods and inventory (if any) to free up cash and reduce any receivables aging.
• Investment in Growth: Evaluate opportunities to reinvest surplus cash into fixed assets or business development to drive future revenue growth. Currently, the low fixed asset base may limit capacity expansion.
• Cost Management: As the business scales, maintain tight control over overheads and staffing to preserve profitability.
• Strategic Planning: Develop a medium-term plan to leverage the strong financial position for client acquisition, marketing, or diversification within engineering consultancy.
• Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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Medical Analogy Summary

The company shows a strong "financial heartbeat" with robust liquidity and expanding "equity muscle." The "symptoms" indicate a healthy business environment without signs of "financial infection" such as debt strain or cash flow congestion. The financial "immune system" appears effective, but ongoing vigilance on working capital and growth investments will help maintain vitality.

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