JD CHANGE SOLUTIONS LIMITED

Executive Summary

JD CHANGE SOLUTIONS LIMITED is financially healthy with strong liquidity and profitability for a young micro company. The company displays solid working capital and net assets, indicating good financial management and operational success. Focused growth, prudent dividend policy, and careful tax management are recommended to sustain and enhance financial wellness.

JD CHANGE SOLUTIONS LIMITED - Analysis Report

Company Number: 14738371

Analysis Date: 2025-07-29 13:05 UTC

Financial Health Assessment of JD CHANGE SOLUTIONS LIMITED as of 31 March 2025

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1. Financial Health Score: B

JD CHANGE SOLUTIONS LIMITED demonstrates a solid financial footing for a young company, with positive net current assets and a growing retained earnings reserve. The "B" grade reflects a healthy initial stage with good liquidity but some caution due to its early life and relatively modest asset base. This score indicates a generally stable condition but with room to build greater resilience and scale.

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2. Key Vital Signs

Metric	31 March 2025	Interpretation
Current Assets	£52,141	Healthy short-term assets, mainly cash (£42,541).
Current Liabilities	£25,553	Manageable short-term obligations.
Net Current Assets	£26,588	Positive working capital, indicating ability to cover short-term debts comfortably.
Net Assets (Equity)	£26,588	Positive equity, showing net value after liabilities.
Retained Earnings	£26,488	Accumulated profits retained in the business, showing profitability and reinvestment.
Cash Ratio (Cash / Current Liabilities)	1.67	Strong liquidity; cash covers current liabilities by 167%.
Profit for Period	£53,580	Indicates profitable operations for the accounting period.
Dividends Paid	£34,103	Distribution to shareholders, balanced with profit retention.
Number of Employees	1	Very small operation, typical for micro enterprise.
Account Category	Total Exemption Full	Filing under micro-entity rules, indicating small scale.

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3. Diagnosis: Business Financial Health Overview

JD CHANGE SOLUTIONS LIMITED is a micro private limited company engaged in IT consultancy. It is very young, incorporated in March 2023, and has filed its first full set of accounts for a two-year period ended 31 March 2025.

Vital Signs:

• The company shows a "healthy cash flow" symptom, with cash reserves significantly exceeding current liabilities, a positive sign of liquidity and short-term financial stability.
• Net current assets and net assets are positive and growing, indicating "robust working capital" and a "healthy balance sheet."
• Retained earnings have increased substantially due to profitability, signaling good operational performance.
• The company has paid dividends, which suggests confidence in cash flow but requires monitoring to ensure it does not impair liquidity.
• The small number of employees and minimal fixed assets suggest a low overhead, typical of consultancy businesses.

Potential Symptoms of Distress:

• Though the company is profitable, it remains small and early-stage, which inherently carries risks related to market competition and scalability.
• Current liabilities mainly consist of taxation and social security, which must be managed vigilantly to avoid penalties.
• No long-term liabilities or debts are recorded, indicating low leverage but also potentially limited access to growth capital.

Overall Diagnosis:

The company is financially healthy with strong liquidity and profitability for its stage. It operates with a sound capital base and prudent financial management. Being newly established, it is in a growth phase and should focus on scaling and maintaining cash discipline.

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4. Recommendations for Improving Financial Wellness

• Maintain Strong Liquidity: Continue to monitor and maintain cash reserves above short-term liabilities to avoid any liquidity "stress symptoms."
• Control Dividends: While dividend payments reflect confidence, ensure these distributions do not impair working capital needed for growth and tax obligations.
• Expand Client Base and Revenue Streams: To strengthen financial resilience, focus on broadening IT consultancy contracts and diversifying income.
• Plan for Growth Capital: Consider accessing credit or investment options early to fund expansion without overreliance on profits.
• Monitor Tax Liabilities: As taxation and social security form a large part of current liabilities, ensure timely payments to avoid penalties.
• Invest in Asset Base and Infrastructure: Gradually build tangible assets or technology tools that can improve service delivery and competitive advantage.
• Formalise Financial Controls: Implement budgeting and forecasting to anticipate cash flow needs and plan for contingencies.
• Consider Employee Expansion: Growing the team carefully can enhance service capacity but must be balanced against cost controls.

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