JIHAN LTD

Executive Summary

JIHAN LTD demonstrates a stable and improving financial position as a micro-entity retailer, with strong liquidity and growing equity. While the company’s asset base is modest, it shows no signs of distress and is well-positioned to maintain operational health. Focused cash flow management and prudent growth initiatives are recommended to sustain and enhance financial wellness.

JIHAN LTD - Analysis Report

Company Number: 14175717

Analysis Date: 2025-07-29 18:36 UTC

Financial Health Assessment Report for JIHAN LTD
(as of 30 June 2024)

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1. Financial Health Score: B

Explanation:
JIHAN LTD shows a stable financial position with positive net assets and improving working capital. The company’s financial "vital signs" indicate healthy short-term liquidity and a solid equity base for its size. However, some caution is warranted due to modest fixed assets and limited scale as a micro-entity, which may restrict growth and resilience.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	8,449	11,266	Slight reduction suggests limited capital investment or asset disposals; not unusual for micro firms.
Current Assets	53,940	43,747	Healthy increase, indicating improved cash, receivables, or stock levels to support operations.
Current Liabilities	39,635	39,682	Stable short-term debts; manageable relative to current assets.
Net Current Assets (Working Capital)	14,305	4,065	Significant improvement; a strong sign of liquidity "health," meaning the company can cover short-term obligations comfortably.
Net Assets / Shareholders’ Funds	22,754	15,331	Growth in equity base indicates retained profits or capital injections, providing a financial cushion.

Additional Notes:

• The company employs 1 person (up from 0), indicating early-stage growth or operational scaling.
• The business operates in retail sale of food, beverages, or tobacco, which often requires tight cash flow management.

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3. Diagnosis

JIHAN LTD’s financial "pulse" shows a generally healthy condition for a young micro-entity in retail. The balance sheet reveals:

• Strong liquidity: Working capital has more than tripled year-over-year, suggesting improved cash flow management and ability to meet immediate liabilities without distress. This is akin to a patient whose vital signs have stabilized after initial treatment.
• Growing equity: The increase in net assets signals a robust financial "immune system," enhancing the company's ability to absorb shocks or fund future growth.
• Asset base: Fixed assets are modest and slightly reduced, reflecting either asset disposals or minimal capital investment, consistent with a small-scale retailer’s needs. This is not alarming but highlights limited physical resources.
• No audit requirement: As a micro-entity, the company benefits from simplified reporting, but this also means less external financial scrutiny, requiring careful internal oversight to detect any issues early.

There are no symptoms of financial distress such as overdue filings, negative net assets, or excessive liabilities. The company appears to be in a stable financial "state of health," though its micro scale means it remains vulnerable to external shocks or market changes.

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4. Recommendations

To maintain and improve financial wellness, JIHAN LTD should consider the following actions:

• Maintain strong working capital management: Continue monitoring cash flow closely, ensuring receivables and stock levels align with sales cycles to avoid liquidity strain.
• Expand fixed assets prudently: Evaluate opportunities to invest in assets that could enhance operational efficiency or capacity, balancing growth with financial prudence.
• Build financial reserves: Aim to increase retained earnings gradually to create a buffer against unforeseen expenses or economic downturns.
• Incremental growth in workforce: As sales and operations grow, carefully scale staffing to balance productivity and cost control.
• Regular financial reviews: Even without audit requirements, conduct periodic internal financial reviews or engage advisory support to detect early warning signs and capitalize on growth opportunities.
• Strategic planning: Develop a medium-term business plan incorporating market trends in retail, aiming to diversify customer base and product offerings to reduce risks.

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