JDELECTRIX LTD

Executive Summary

JDELECTRIX LTD is currently in a fragile financial condition with critically low cash reserves and minimal equity, signaling urgent liquidity risks. While operational compliance is maintained, the company must prioritize cash flow management and capital strengthening to avoid deeper financial distress. Prompt and strategic financial interventions are necessary to restore its fiscal health and ensure sustainable business operations.

JDELECTRIX LTD - Analysis Report

Company Number: 13670388

Analysis Date: 2025-07-29 14:05 UTC

Financial Health Assessment of JDELECTRIX LTD as at 31 October 2024

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1. Financial Health Score: D

Explanation:
JDELECTRIX LTD shows significant symptoms of financial distress and weakness. The company’s cash reserves have plummeted drastically over the last three years from £5,180 in 2022 to a mere £55 in 2024, which is dangerously low for operational liquidity. Net current assets remain marginally positive but only at £10, indicating a fragile buffer against short-term liabilities. The shareholder funds have dwindled to £10, suggesting minimal equity base. These are signs of a company struggling to maintain a healthy financial pulse.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	2022	2023	2024	Interpretation
Cash at Bank	£5,180	£285	£55	Sharp decline in cash—“heart rate” slowing dangerously—risk of cash flow crisis.
Current Liabilities	(Not shown)	£275	£45	Declining short-term debts but still close to cash levels, indicating tight liquidity.
Net Current Assets	£5,180	£10	£10	Almost zero working capital “oxygen” available to meet day-to-day obligations.
Net Assets / Shareholders’ Funds	£5,180	£10	£10	Equity base collapsed, reflecting erosion of company value and “muscle” mass.
Number of Employees	2 (2024)	—	—	Small team, consistent with micro/small company classification.

• Cash Flow Vital Sign: The drastic fall in available cash is a critical symptom of distress, putting the company at risk of inability to cover immediate expenses.
• Working Capital: Marginal positive net current assets (£10) indicate the company is barely able to meet short-term liabilities, a sign of precarious liquidity.
• Equity Base: The collapse of net assets from £5,180 to £10 suggests accumulated losses or significant capital withdrawals, weakening financial resilience.
• Filing and Compliance: No overdue filings; the company meets statutory compliance deadlines, a positive sign of governance.

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3. Diagnosis: Financial Condition Assessment

JDELECTRIX LTD is experiencing symptoms akin to a patient with a weakening heart and depleted energy reserves:

• The company’s cash reserves have nearly flatlined, falling from a relatively healthy £5,180 in 2022 to just £55 in 2024. This is a severe warning sign of liquidity problems.
• The minimal net current assets suggest the company has barely enough “working capital oxygen” to operate and is vulnerable to any unexpected expenses or delays in receivables.
• The equity base erosion to just £10 indicates a near-total loss of retained earnings or capital injections, meaning the company’s financial “muscle” is severely atrophied.
• Despite these financial strains, there is no indication the company is in formal distress procedures (liquidation, administration), suggesting it is still operational but with a fragile financial constitution.
• The company operates in electrical installation and associated construction sectors, which often require upfront capital and timely payments, making liquidity critical.
• The director is also the sole significant controller, indicating centralized decision-making, which could be a strength or a risk depending on management effectiveness.

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4. Recommendations: Steps to Improve Financial Wellness

Short-Term (Stabilize Cash Flow):

• Prioritize cash management: urgent review of receivables and payables to accelerate incoming cash and delay outflows without damaging supplier relationships.
• Consider short-term financing options (overdrafts, invoice factoring) to keep the “circulatory system” flowing.
• Cut non-essential expenses immediately to preserve cash.

Medium-Term (Strengthen Balance Sheet):

• Explore capital injection or shareholder loans to rebuild equity and provide a stronger financial foundation.
• Negotiate longer payment terms with creditors to improve working capital buffer.
• Review pricing and contract terms to ensure profitability per job, as shrinking equity may reflect operational losses.

Long-Term (Sustain Growth and Financial Health):

• Implement robust budgeting, forecasting, and financial controls to detect early signs of distress.
• Diversify customer base and contracts to reduce risk of payment delays.
• Consider professional financial advisory support to monitor liquidity and solvency regularly.

Governance and Transparency:

• Maintain timely filings and compliance to avoid penalties and maintain credibility with suppliers and lenders.
• Given sole director control, consider appointing a finance professional or advisor to provide independent oversight.

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Medical Analogy Summary

JDELECTRIX LTD’s financial condition resembles a patient with a weakening cardiovascular system—cash flow is the lifeblood, and it is dangerously low. The company has minimal reserves and equity “muscle,” indicating vulnerability to shocks. Immediate intervention to stabilize cash flow and rebuild equity is essential to prevent financial collapse.

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