JIC IT CONSULTING LTD

Executive Summary

JIC IT CONSULTING LTD is a recently incorporated micro business exhibiting typical early-stage financial characteristics: modest assets, slightly negative working capital, and positive equity. While currently financially stable, the company faces tight liquidity and should focus on improving cash flow management and building working capital to ensure sustainable growth. With careful financial oversight and strategic planning, the company’s outlook remains cautiously positive.

JIC IT CONSULTING LTD - Analysis Report

Company Number: 14968667

Analysis Date: 2025-07-19 12:42 UTC

Financial Health Assessment of JIC IT CONSULTING LTD

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1. Financial Health Score: B-

Explanation:
JIC IT CONSULTING LTD is a very young micro-entity, operational for just over one year. Its financials show modest asset holdings and a near break-even working capital position, which is typical for a start-up in the IT consultancy sector. The company demonstrates no severe financial distress but has limited liquidity and working capital buffers, reflecting an early-stage business still building its foundation. The score B- indicates a generally stable but cautious financial position with room for improvement.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	2,217	Small capital investment in equipment/tools. Healthy for a start-up; assets are tangible but limited.
Current Assets	694	Very low current assets, mainly cash/debtors. Indicates limited short-term resources.
Current Liabilities	855	Slightly higher than current assets, indicating a minor liquidity strain.
Net Current Assets (Working Capital)	-6	Negative, but marginally so. Suggests tight short-term cash flow.
Accruals and Deferred Income	600	Recognises income or expenses not yet realised; typical for service companies.
Net Assets (Shareholder Equity)	1,611	Positive but modest equity base showing initial capital and retained earnings.
Average Number of Employees	0	No staff employed, relying likely on directors or subcontractors.

Interpretation:

• The "vital signs" indicate a start-up with limited working capital and minimal current assets, which is common in new enterprises.
• The slightly negative net current assets (-£6) is a "symptom" of tight liquidity but not yet a critical "distress signal."
• The modest fixed assets suggest low capital intensity—healthy for a consultancy business.
• Shareholder funds are positive, implying no accumulated losses yet.
• No employees means low operating overhead but potential dependency on directors’ time and resources.

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3. Diagnosis: Overall Financial Condition

JIC IT CONSULTING LTD shows the financial "vital signs" of a typical micro start-up in the IT consultancy sector. The company is in its infancy (incorporated mid-2023), and its financials reflect early-stage investment and cautious operations with minimal staff and infrastructure.

Symptoms:

• Slightly negative working capital is a mild symptom of tight liquidity, which could become problematic if not managed carefully.
• Positive net assets indicate no immediate solvency issues—shareholders have funded the business adequately so far.
• The absence of employees reduces payroll burdens but may limit growth potential if the directors’ capacity is stretched.

Underlying Health:

• The company is financially stable but vulnerable to cash flow shocks due to low liquid reserves.
• The business model (IT consulting) likely has low fixed costs, which is advantageous.
• Directors’ active involvement and control provide governance stability.

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4. Recommendations: Steps to Improve Financial Wellness

1. Improve Liquidity Management:

   • Monitor and manage cash flow closely to avoid negative working capital.
   • Consider negotiating longer payment terms with creditors or faster collections from clients to ease short-term cash pressures.

2. Build Working Capital Buffer:

   • Retain earnings or inject additional capital to establish a positive net current asset position.
   • Even a small buffer (£5,000–£10,000) can provide breathing room against unforeseen expenses.

3. Plan for Growth Staffing:

   • As revenues grow, consider hiring employees or subcontractors to expand service capacity without overextending directors.

4. Maintain Accurate Financial Records:

   • Continue timely filing of accounts and confirmation statements to avoid penalties and maintain credibility with stakeholders.

5. Explore Revenue Diversification:

   • Develop multiple client streams or service offerings to stabilize income and reduce dependency on limited contracts.

6. Regular Financial Health Checks:

   • Perform periodic financial reviews (quarterly) to catch early warning signs of distress and respond proactively.

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Medical Analogy Summary:
JIC IT CONSULTING LTD is like a young patient recently born into the business world—showing stable vital signs but with a thin margin of liquidity that requires careful monitoring. The "heart" (equity base) is strong enough to support initial operations, but the "circulatory system" (cash flow) is still fragile. With attentive "nursing" (financial management and planning), the company can grow into a robust and healthy enterprise.

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