JIMKLEAN SERVICES LIMITED

Executive Summary

JIMKLEAN SERVICES LIMITED exhibits strong financial health with excellent liquidity and growing shareholder equity, indicating a well-managed and resilient micro-business. The absence of current liabilities and improving net assets are clear signs of financial vitality, though the decline in fixed assets warrants attention to ensure sustained operational capacity. With prudent asset management and continued profitability, the company is positioned for a positive financial outlook.

JIMKLEAN SERVICES LIMITED - Analysis Report

Company Number: 13137752

Analysis Date: 2025-07-29 20:52 UTC

Financial Health Assessment for JIMKLEAN SERVICES LIMITED

Date of Assessment: Based on latest accounts dated 31 January 2025

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1. Financial Health Score: B+

Explanation:
JIMKLEAN SERVICES LIMITED demonstrates a robust and improving financial position for a micro-entity in the general cleaning sector. The company shows strong net current assets and positive net assets that have nearly doubled over the past year. The absence of current liabilities in the latest year is a very healthy sign, indicating no immediate debts or payables putting pressure on liquidity. However, fixed assets have declined, suggesting possible asset disposals or limited reinvestment, which may warrant monitoring to ensure long-term operational capacity. Overall, the company exhibits healthy financial "vital signs" but with some cautionary notes on asset investment.

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2. Key Vital Signs:

• Net Current Assets (Working Capital): £13,626 (2025) up from £1,206 (2024)
  Interpretation: This is a vital measure of liquidity. The company has ample short-term assets to cover immediate liabilities, indicating very healthy cash flow and operational liquidity. This is akin to a patient having strong pulse and blood pressure — good signs of life.
• Current Liabilities: £0 (2025) down from £10,855 (2024)
  Interpretation: No short-term debts or payables due, eliminating symptoms of financial distress or liquidity crunch.
• Net Assets / Shareholders’ Funds: £20,626 (2025) up from £11,706 (2024)
  Interpretation: Equity has grown significantly, reflecting retained earnings or capital injections and signaling strengthening financial resilience.
• Fixed Assets: £7,000 (2025) down from £10,500 (2024)
  Interpretation: Reduction suggests sale or depreciation of long-term assets, which could impact operational capacity if not replaced. Needs monitoring to ensure the company maintains its productive base.
• Employee Count: 10 (consistent)
  Interpretation: Stable workforce size supports operational continuity.

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3. Diagnosis:

JIMKLEAN SERVICES LIMITED presents as a financially "fit" micro-business with strong liquidity and growing equity. The lack of current liabilities and increasing net current assets suggest the company is managing its working capital efficiently, with no immediate financial distress symptoms. The doubling of net assets over one year indicates good profitability or capital support, akin to a patient gaining strength and vitality. However, the decline in fixed assets is a mild concern — like a patient losing muscle mass — hinting at underinvestment or asset disposals which could affect future capacity if not addressed.

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4. Recommendations:

• Maintain Healthy Liquidity: Continue to monitor cash flow closely to avoid build-up of short-term liabilities.
• Reassess Fixed Asset Strategy: Evaluate reasons for fixed asset decline and consider reinvestment in equipment or facilities to support growth and operational efficiency.
• Profit Retention and Growth: Aim to sustain or improve profitability to further strengthen equity and cushion against future risks.
• Operational Efficiency: Maintain stable employee numbers and consider training or productivity improvements to enhance service delivery without escalating costs.
• Regular Financial Review: Keep performing detailed periodic financial diagnostics to detect any early signs of distress, especially as business scales or market conditions change.

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