JAMIESON’S JUICE FACTORY LTD

Executive Summary

Jamieson’s Juice Factory Ltd has shown a commendable financial recovery in the latest fiscal year, moving from negative net assets and working capital to positive territory. While this turnaround indicates improved liquidity and solvency, the company remains in a vulnerable state, requiring continued prudent financial management and cautious growth strategies to maintain and enhance its financial health.

JAMIESON’S JUICE FACTORY LTD - Analysis Report

Company Number: 13622347

Analysis Date: 2025-07-29 16:37 UTC

Financial Health Assessment of Jamieson’s Juice Factory Ltd

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1. Financial Health Score: B-

Jamieson’s Juice Factory Ltd demonstrates a significant financial turnaround over the most recent fiscal year. From a position of distress with negative net assets and working capital in 2023, it has moved into positive territory by 2024. However, the relatively low current assets and moderate fixed asset base, combined with a small shareholder equity, suggest cautious optimism rather than robust health. This score reflects a recovering but still fragile financial condition.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	4,186	Stable investment in long-term assets, indicating some capital base for operations.
Current Assets	2,478	Modest liquid resources; reduced significantly from prior year, signaling tighter cash flow.
Current Liabilities	1,898	Short-term obligations have decreased drastically, easing liquidity pressure.
Net Current Assets (Working Capital)	580	Positive working capital indicates the company can cover short-term debts; a critical improvement from prior years’ negative figures.
Net Assets (Shareholders Funds)	4,766	Positive net assets represent the company's book value and equity growth, signaling improved solvency.
Average Number of Employees	3	Small workforce consistent with micro-entity status; slight increase indicates cautious growth.

Interpretation:
The dramatic shift from negative to positive working capital and net assets is the key "vital sign" reflecting recovery. The company has improved its ability to meet immediate financial obligations ("healthy cash flow") and has begun to rebuild shareholder equity. The decrease in current assets alongside a more than 80% reduction in current liabilities suggests effective management of payables and possibly tighter credit terms or improved collections.

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3. Diagnosis: Financial Condition and Symptoms Analysis

Symptoms of Past Distress:
In 2021 and 2023, the company exhibited "symptoms of distress" with negative working capital (£-8,139 in 2021, £-5,460 in 2023) and negative net assets (£-4,383 in 2021, £-2,101 in 2023). This indicated liquidity challenges and insolvency risks, where short-term liabilities exceeded current assets and total liabilities surpassed total assets.

Signs of Recovery:
By 2024, vital signs show a reversal, with net current assets turning positive to £580 and net assets rising to £4,766. This suggests the company has stabilized operations, improving its liquidity and solvency—akin to a patient recovering after treatment. The reduction in current liabilities by 82% from £10,596 to £1,898 is particularly notable, likely due to strategic debt repayment or renegotiation.

Underlying Health:
The company’s capital structure remains modest, consistent with micro-entity classification. The fixed assets have remained fairly stable, indicating no major new capital investments or disposals. The increase in employee count from 1 to 3 suggests cautious operational scaling.

Overall, the company is currently in a "stable but vulnerable" state. It has overcome immediate financial distress but remains dependent on maintaining positive cash flows and controlling liabilities to avoid relapse into liquidity difficulties.

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4. Recommendations to Improve Financial Wellness

1. Strengthen Cash Flow Management:

• Maintain tight control over receivables and payables to preserve positive working capital.
• Build a cash reserve buffer to absorb unexpected expenses.

2. Monitor and Manage Liabilities:

• Avoid accumulation of short-term debts that could strain liquidity.
• Consider negotiating longer payment terms with suppliers to improve cash flow timing.

3. Incremental Growth Strategies:

• With a small but growing workforce, ensure that revenue growth supports increased operational costs.
• Explore modest capital investments that can enhance production or sales capacity without overextending finances.

4. Regular Financial Review:

• Closely track monthly financial performance against budgets to detect early warning signs of distress.
• Prepare for future filing deadlines well in advance to avoid penalties and maintain compliance.

5. Explore External Funding if Needed:

• If growth opportunities arise, consider small-scale loans or equity investment to support expansion, ensuring terms are manageable.

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