JAY A1 SOLUTIONS LIMITED

Executive Summary

JAY A1 SOLUTIONS LIMITED is currently facing significant financial challenges, including negative net assets and severe liquidity constraints. Immediate action is required to improve cash flow, reduce liabilities, and inject capital to stabilize the company's financial health. Without prompt intervention, the company risks insolvency despite its micro-entity status and low operational scale.

JAY A1 SOLUTIONS LIMITED - Analysis Report

Company Number: 13544309

Analysis Date: 2025-07-29 14:03 UTC

Financial Health Assessment for JAY A1 SOLUTIONS LIMITED

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1. Financial Health Score: D

Explanation:
The company is currently showing worrying signs of financial distress, with negative net assets and increasing current liabilities exceeding current assets. The score "D" reflects a fragile financial condition that requires urgent management attention to avoid further deterioration.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	440	Very low, indicating minimal long-term investment.
Current Assets	35	Extremely low, suggesting poor liquidity.
Current Liabilities	3,099	High relative to assets, indicating short-term debt pressure.
Net Current Assets (Working Capital)	-3,064	Negative working capital – a symptom of cash flow stress.
Total Assets Less Current Liabilities	-2,624	Negative, reflecting liabilities outweigh assets.
Net Assets (Equity)	-3,824	Negative shareholders' funds, indicating insolvency risk.
Average Employees	1	Very small operation, likely limited capacity to generate revenue.

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3. Diagnosis: What the Financial Data Reveals

• Symptoms of Financial Distress: Over the last year, JAY A1 SOLUTIONS LIMITED has experienced a sharp decline in liquidity and solvency. The company's current liabilities have ballooned from £537k in 2023 to £3,099k in 2024, while current assets shrank significantly from £121k to just £35k. This mismatch is a classic symptom of cash flow problems—akin to a patient showing signs of dehydration and organ stress.

• Negative Net Assets: The company’s net assets have moved from a negative £606k in 2023 to a more severe negative £3,824k in 2024. This indicates liabilities exceed assets greatly, a critical warning that the company is technically insolvent on a balance sheet basis.

• Diminished Fixed Assets: Fixed assets have decreased slightly, which may reflect asset disposals or depreciation but are immaterial relative to the scale of current liabilities.

• Micro Entity Scale with High Risk: Being a micro entity with just one employee, the company likely has limited resources to turn the situation around without external capital or operational improvements.

• Management and Control: The sole director, who also holds 75-100% of shares, has a direct influence on company strategy and financial decisions. This concentrated control can be beneficial for swift decision-making but also increases risk if corrective measures are not taken quickly.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Urgent Cash Flow Management:

   • Prioritize collection of receivables and reduction of payables where possible to improve liquidity.
   • Negotiate extended payment terms with creditors to ease short-term cash pressure.

2. Capital Injection or Financing:

   • Explore options for fresh equity investment or shareholder loans to restore positive net assets and working capital.
   • Consider short-term financing facilities to bridge liquidity gaps.

3. Cost Control and Operational Review:

   • Review all operating expenses and cut non-essential costs immediately to conserve cash.
   • Evaluate business model viability, given the limited asset base and small scale.

4. Strategic Planning and Forecasting:

   • Develop detailed cash flow forecasts and financial plans to monitor progress and anticipate future needs.
   • Engage with financial advisors or insolvency practitioners proactively if turnaround prospects are uncertain.

5. Compliance and Reporting:

   • Maintain timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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Medical Analogy Summary

JAY A1 SOLUTIONS LIMITED is showing "symptoms of distress" similar to a patient with severe dehydration and critical electrolyte imbalance. The liquidity crisis reflects an urgent need for "intravenous fluid therapy" in the form of fresh capital and cash flow management. Without intervention, the company risks "organ failure"—i.e., insolvency and possible liquidation.

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