JEMS SOLUTIONS LIMITED

Executive Summary

JEMS Solutions Limited is financially healthy with strong liquidity and positive net assets, typical of a newly established engineering service company. The company shows no immediate signs of distress, but as a micro-business, it should focus on growing revenues, managing liabilities, and enhancing financial reporting to ensure sustainable long-term health.

JEMS SOLUTIONS LIMITED - Analysis Report

Company Number: 15412909

Analysis Date: 2025-07-29 19:37 UTC

Financial Health Assessment of JEMS SOLUTIONS LIMITED (As of 31 January 2025)

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1. Financial Health Score: B

Explanation:
JEMS Solutions Limited exhibits a sound financial position typical for a newly incorporated small private limited company. The balance sheet shows positive net assets and healthy working capital, indicating good initial financial stability. However, limited operational history and modest tangible asset base suggest room for growth and increased financial robustness.

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2. Key Vital Signs

Metric	Value	Interpretation
Cash at Bank	£51,745	Strong liquidity; healthy cash flow "pulse" at start-up.
Current Liabilities	£14,030	Manageable short-term obligations; no immediate distress signs.
Net Current Assets	£37,715	Positive working capital; good short-term financial flexibility.
Net Assets (Equity)	£40,497	Positive net worth; company’s balance sheet "heart" is strong.
Tangible Fixed Assets	£2,782	Small investment in fixed assets; typical for early stage.
Employees	1	Micro business scale; lean operations.
Share Capital	£100	Minimal initial equity; mainly retained earnings/profit reserve.
Profit and Loss Reserve	£40,397	Accumulated retained earnings; indicates profitable operations since inception.

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3. Diagnosis: What the Financial Data Reveals About Business Health

JEMS Solutions Limited is in the early stages of its lifecycle, having been incorporated in January 2024 and reporting its first full financial year ending January 2025. The company is financially "fit" with a strong cash position and positive working capital, signaling no immediate liquidity concerns or financial distress.

The "symptoms" of a healthy business include:

• Healthy cash reserves: Cash of £51,745 provides a buffer for operational needs and unexpected expenses.
• Positive net current assets: Indicates the company can cover its short-term liabilities comfortably.
• Net assets and shareholder equity are positive: The company's "balance sheet heart" is strong, reflecting retained earnings and prudent financial management.
• Low fixed asset base: Typical for a service or engineering consultancy business; minimal capital tied up in equipment.
• Single employee: Indicates lean management, possibly owner-managed, which aligns with a micro/small company structure.

Potential areas to watch:

• Taxation and social security creditors at £9,743: While not alarming, these short-term liabilities should be managed carefully to avoid cash flow strain.
• Turnover and profitability details unavailable: Without turnover figures, assessing revenue growth or profit margins is limited.
• Dependence on a single controlling shareholder/director: Concentration risk exists, though common in small private companies.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Maintain strong cash flow management: Continue to monitor cash inflows and outflows carefully to sustain liquidity and avoid any "financial fever."
• Build turnover and diversify revenue sources: Focus on growing sales and expanding client base to strengthen the "financial immune system" against market fluctuations.
• Manage liabilities proactively: Ensure timely payment of tax and social security obligations to prevent penalties or cash flow disruptions.
• Consider strategic investment in fixed assets or technology: To support operational efficiency and scalability as business grows.
• Document and track profitability metrics: Implement detailed financial reporting to diagnose income trends and cost control, enabling informed decision-making.
• Plan for succession and governance: Given the controlling interest of one shareholder, preparing for business continuity and compliance governance is advisable.

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