JIT SINGH CONSULTING LIMITED

Executive Summary

JIT SINGH CONSULTING LIMITED shows a recovering financial condition with a solid equity base but ongoing challenges in liquidity reflected by negative working capital. While the company’s long-term assets and capital structure are stable, attention is needed to improve short-term financial flexibility and cash flow management. With focused operational and financial discipline, the company can strengthen its financial health and sustain growth.

JIT SINGH CONSULTING LIMITED - Analysis Report

Company Number: 13836617

Analysis Date: 2025-07-20 11:36 UTC

Financial Health Assessment for JIT SINGH CONSULTING LIMITED
As of Financial Year End 31 October 2024

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1. Financial Health Score: C

Explanation:
JIT SINGH CONSULTING LIMITED exhibits moderate financial health. The company shows a positive trend in net assets and equity, indicating some recovery and growth. However, persistent net current liabilities ("working capital deficit") represent symptoms of liquidity stress, potentially limiting operational flexibility. The score "C" reflects a business with stable foundations but exhibiting cautionary signs needing management attention for sustained wellness.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	246,100	262,973	Significant investment in long-term assets, stable base for operations. Slight dip may indicate asset disposals or depreciation.
Current Assets	100,147	11,581	Strong increase in liquid and near-liquid assets, a positive sign of improved short-term resources.
Current Liabilities	153,230	160,601	Slight reduction in short-term obligations but still high relative to current assets.
Net Current Assets	-52,128	-148,024	Negative working capital, though improving, indicates symptoms of liquidity strain. The company owes more in the short term than it holds in easily accessible assets.
Net Assets (Shareholders’ Funds)	191,332	113,449	Healthy growth in equity suggests retained earnings or capital injections strengthening the company’s financial foundation.
Accruals and Deferred Income	2,640	1,500	Increase indicates more income received or expenses accrued but not yet realized, manageable at this scale.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity and Working Capital:
  The company has symptoms of liquidity distress as evidenced by its negative net current assets, though this has improved significantly in the latest year from a deeper deficit. This suggests ongoing challenges in meeting short-term obligations promptly, likened to a patient with a "weak pulse" in cash flow. The increase in current assets is encouraging but still insufficient to fully cover short-term liabilities.

• Solvency and Capital Structure:
  The net assets and shareholders’ funds have increased substantially, indicating a stronger capital base. This is akin to a patient whose "immune system" (equity) is gaining strength, providing resilience against financial shocks.

• Asset Management:
  Fixed assets represent a significant portion of the company’s balance sheet, suggesting a capital-intensive business model or investment in essential infrastructure. While stable, the slight decrease could indicate asset wear or disposals.

• Profit Retention and Growth:
  The growth in equity without audit notes suggests profits are being retained or capital introduced to support growth. However, absence of profit and loss data limits full assessment of operational profitability.

• Compliance and Governance:
  The company is active, up to date with filings, and directors are properly appointed, indicating no regulatory distress.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity Management:
  Prioritize converting current assets into cash and reducing current liabilities through negotiation of payment terms or debt restructuring. This will strengthen the company’s "blood flow," easing pressure on day-to-day operations.

• Enhance Cash Flow Forecasting:
  Implement rigorous cash flow monitoring to anticipate shortfalls early, similar to regular vital sign checks in healthcare, enabling proactive management interventions.

• Evaluate Asset Utilization:
  Review fixed assets for productivity and consider whether disposals or upgrades could improve operational efficiency and free up cash.

• Build Profitability and Reserve:
  Focus on increasing operational profitability to bolster retained earnings, thereby strengthening shareholders’ funds and reducing reliance on external financing.

• Maintain Compliance and Governance:
  Continue timely filing of accounts and returns, ensuring transparency and avoiding penalties that could compromise financial health.

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