JESS FORESIGHT HEALTHCARE LIMITED

Executive Summary

JESS FORESIGHT HEALTHCARE LIMITED is currently experiencing serious financial distress, with negative net assets and working capital indicating liquidity and solvency challenges. Urgent action on cash flow management, cost control, and potential capital infusion is needed to restore financial health and avoid insolvency risks. The company’s small scale and concentrated ownership offer some flexibility for turnaround but require disciplined financial governance.

JESS FORESIGHT HEALTHCARE LIMITED - Analysis Report

Company Number: 13643518

Analysis Date: 2025-07-29 18:46 UTC

Financial Health Assessment for JESS FORESIGHT HEALTHCARE LIMITED

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1. Financial Health Score: D

Explanation:
The company’s latest financials reveal symptoms of financial distress, notably negative net current assets and shareholders' funds, indicating a fragile liquidity and solvency position. While it remains active, the balance sheet shows a significant worsening from prior years, pointing to serious underlying challenges.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	2,916	Minimal investment in long-term assets; stable but low
Current Assets	13	Severely low liquid assets; almost no cash or receivables
Current Liabilities	8,808	Short-term debts are high relative to assets
Net Current Assets (Working Capital)	-8,795	Negative working capital; a symptom of cash flow strain
Total Net Assets (Equity)	-5,879	Negative net worth; liabilities exceed assets, indicating insolvency risk
Shareholders’ Funds	-5,879	Negative equity; company is technically insolvent
Employee Count	1	Micro entity with minimal staffing

Additional Observations:

• The company is classified as a Micro entity, with filing exemptions.
• The sole director and 100% shareholder is Ms Jessie Chinonye Ezebuilo, indicating centralized control.
• Industry: Child day-care and regulation of health/social services, sectors sensitive to cash flow and regulatory compliance.

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3. Diagnosis: Financial Health Overview

The company’s financial "vital signs" indicate a critical condition akin to a patient showing clear symptoms of distress:

• Liquidity Crisis: With only £13 in current assets against £8,808 in current liabilities, the company is facing a severe liquidity crunch. This means it may not have enough cash or near-cash assets to meet immediate obligations, risking defaults to suppliers or creditors.

• Balance Sheet Insolvency: Negative net assets and shareholders’ funds suggest liabilities outweigh assets. This is a core symptom of insolvency, which if not addressed, could lead to insolvency procedures like administration or liquidation.

• Declining Financial Health: Compared to prior years where net assets were positive (£1 in 2022 and 2021), the sudden plunge to -£5,879 shows deterioration, possibly due to accumulated losses or increased liabilities.

• Limited Operating Scale: The micro entity status and single employee indicate a small-scale operation, which may limit access to capital or credit and reduce financial flexibility.

• No Audit: Accounts are unaudited, which is typical for a micro company but means financial oversight is minimal.

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4. Recommendations: Prescriptions for Financial Wellness

1. Immediate Cash Flow Management:

   • Conduct a detailed cash flow forecast.
   • Prioritize payments to critical suppliers and creditors.
   • Explore short-term financing options or overdrafts to cover urgent liabilities.

2. Cost Control and Revenue Enhancement:

   • Review operating expenses to identify and eliminate unnecessary costs.
   • Explore opportunities to increase revenue streams or improve billing and collections processes.

3. Capital Injection:

   • Consider shareholder loans or equity injections from the sole owner to restore positive net assets and improve working capital.
   • If additional funding is unavailable, explore grants or support schemes relevant to healthcare and childcare sectors.

4. Financial Restructuring:

   • Negotiate with creditors for extended payment terms or debt restructuring to reduce immediate pressure.
   • Seek professional advice on insolvency options if recovery seems unlikely.

5. Governance and Monitoring:

   • Implement regular financial monitoring to detect early warning signs.
   • Document financial decisions carefully and maintain compliance with Companies House filings to avoid penalties.

6. Business Model Review:

   • Evaluate the sustainability of the current business model given the financial strain.
   • Consider strategic partnerships or diversification to stabilize operations.

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