JH PROJECT SOLUTIONS LTD

Executive Summary

JH Project Solutions Ltd shows a healthy financial condition for a micro-entity with strong liquidity and growing equity. The company exhibits sound cash flow management with no immediate financial distress symptoms. To sustain and enhance its financial wellness, it should focus on growth diversification, maintaining cash reserves, and formal financial planning.

JH PROJECT SOLUTIONS LTD - Analysis Report

Company Number: 14356924

Analysis Date: 2025-07-20 12:48 UTC

Financial Health Assessment for JH Project Solutions Ltd

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1. Financial Health Score: B

Explanation:
JH Project Solutions Ltd demonstrates a solid and improving financial position typical of a micro-entity in its early years. The company shows healthy net current assets and growing shareholders’ funds, indicating good liquidity and capital retention. The score of B reflects a stable and solvent position with room for growth and strengthening operational cash flows.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	701	935	Minimal investment in long-term assets, typical for a service-oriented consultancy.
Current Assets	71,931	57,900	Healthy liquid resources, mainly cash and receivables, showing good cash flow management.
Current Liabilities	21,275	27,727	Payables and short-term debts are well-controlled and reducing, alleviating short-term liquidity risk.
Net Current Assets	51,056	30,823	Strong working capital position indicating the company can comfortably cover short-term obligations.
Total Assets Less Current Liabilities	51,757	31,758	Reflects overall solvency and the ability to meet liabilities beyond short term.
Net Assets / Shareholders’ Funds	50,757	30,808	Growing equity base demonstrates retained earnings or capital injections supporting business stability.
Staff Numbers	1	1	Small, focused operation which matches the company’s micro entity status.

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3. Diagnosis

Symptoms Analysis:

• The company’s balance sheet shows a "healthy cash flow" symptom with current assets significantly outweighing current liabilities, suggesting the business has sufficient liquidity to meet its short-term commitments.
• The "growth in net assets" is a positive signal indicating profitability or additional capital invested, which strengthens the business’s financial resilience.
• The very low fixed assets indicate minimal capital expenditure, which is common in consultancy services but means the company is likely reliant on human capital and intellectual assets.
• The reduction in current liabilities from 2023 to 2024 signals improving operational efficiency and creditor management, reducing financial stress.
• The one-person staff count (the director) is consistent with a micro company structure but may represent concentration risk if business continuity depends heavily on one individual.

Overall Financial Condition:
The company is financially sound with a stable liquidity position and increasing net worth. The financial "vital signs" do not show any distress symptoms such as excessive liabilities, poor liquidity, or erosion of equity. The company is well positioned for steady operations and potential growth in the consultancy sector.

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4. Recommendations

To further improve financial wellness, the following actions are advised:

• Maintain Strong Cash Flow Management: Continue monitoring receivables and payables closely to sustain the healthy net current asset position. Consider setting aside cash reserves to buffer against unforeseen expenses or market fluctuations.

• Diversify Client Base & Revenue Streams: Being a micro-business with a single director, expanding the client portfolio or service offerings could reduce dependency risk and enhance revenue stability.

• Invest in Growth Initiatives: With a solid equity base, consider modest investment in marketing, technology tools, or hiring additional staff to scale operations and increase market presence.

• Formalize Financial Controls: Implement regular financial reviews and budgeting processes to detect any early "symptoms" of financial stress, such as delayed payments or rising costs.

• Succession & Continuity Planning: Given the company's reliance on a single director/employee, develop contingency plans to ensure business continuity in case of unexpected absence.

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