JAMES CLAYDON SERVICES LIMITED

Executive Summary

JAMES CLAYDON SERVICES LIMITED is financially stable with positive working capital and increasing net assets, reflecting good liquidity and solvency. As a small, single-employee operation, it should focus on building cash reserves and gradually investing in assets to support sustainable growth while maintaining compliance and managing operational risks.

JAMES CLAYDON SERVICES LIMITED - Analysis Report

Company Number: 13122695

Analysis Date: 2025-07-20 12:42 UTC

Financial Health Assessment Report for JAMES CLAYDON SERVICES LIMITED

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1. Financial Health Score: B

Explanation:
The company demonstrates improving financial strength and liquidity, with growing net assets and positive working capital. The small scale of operations (Micro entity) and minimal fixed assets limit the breadth of financial robustness. Overall, the financial position is sound but with some caution due to thin asset base and relatively high current liabilities compared to assets.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£295	Very low, indicating minimal investment in long-term assets.
Current Assets	£25,252	Healthy current assets primarily cash or receivables, showing liquidity strength.
Current Liabilities	£23,541	High relative to current assets but manageable given net positive working capital.
Net Current Assets (Working Capital)	£1,711	Positive working capital: the company can cover short-term debts, a healthy "cash flow pulse."
Net Assets (Equity)	£2,006	Positive net worth; company value is increasing over last year.
Share Capital	£1	Minimal share capital typical of micro companies.
Employees	1	Very small operation; low overheads but also limited capacity.

Trend Notes:

• Net assets increased from £559 to £2,006 in one year, indicating retained earnings or capital injections.
• Working capital improved significantly from £165 to £1,711, reflecting better short-term liquidity.
• Fixed assets declined slightly but are minimal, suggesting limited capital expenditure.

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3. Diagnosis: What the Financial Data Reveals

JAMES CLAYDON SERVICES LIMITED exhibits vital signs of a micro-sized business with stable financial "heartbeats." The company maintains a positive net asset position and increasing working capital, indicating sound day-to-day liquidity and solvency. The low level of fixed assets is consistent with the nature of the business (joinery installation) which may rely more on labor and subcontracting rather than owning expensive equipment.

The balance sheet shows a company that is not overstretched on short-term liabilities and is able to meet obligations as they fall due. The increase in net assets suggests the business is either profitable or has received additional funding, which is a good symptom of health.

With only one employee and a single controlling director, operational risks include dependence on one individual and limited resource capacity. However, this also means overheads are low.

There are no signs of distress such as negative equity or liquidity crunches, and filings are up-to-date, indicating good compliance and governance.

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4. Recommendations: Actions to Improve Financial Wellness

• Build Cash Reserves: While working capital is positive, increasing cash reserves further will provide a cushion against unexpected expenses or seasonal fluctuations. Think of this as building stronger immunity against financial shocks.
• Diversify Asset Base: Consider investing in essential tools or equipment that can improve operational efficiency and reduce reliance on external providers, strengthening the company’s foundation.
• Enhance Profitability Tracking: Implement simple profit and loss monitoring tools to track margins on projects and identify cost-saving opportunities. This will help detect early "symptoms" of financial stress.
• Plan for Growth: With only one employee, explore carefully scaled hiring or subcontracting to increase capacity without overextending financial resources.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing, akin to regular health check-ups.
• Risk Management: As a small operation, personal risk to the director is high. Consider professional indemnity insurance or other protections to safeguard personal and business assets.

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Summary:
JAMES CLAYDON SERVICES LIMITED shows healthy financial "vitals" for a micro-entity with improving liquidity and net assets. The company is solvent, compliant, and operationally lean but should focus on building cash reserves and cautious growth to strengthen long-term stability.