JK DATA SERVICES LIMITED

Executive Summary

JK Data Services Limited demonstrates a healthy financial foundation for a newly formed micro-entity, with strong liquidity and equity positions indicating sound short-term financial health. While profitability and operational scale remain to be proven, current indicators show no distress symptoms. Focused management of cash flow and growth strategy will be critical to sustaining and improving financial wellness.

JK DATA SERVICES LIMITED - Analysis Report

Company Number: 15162056

Analysis Date: 2025-07-20 17:27 UTC

Financial Health Assessment for JK DATA SERVICES LIMITED

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1. Financial Health Score: B

Explanation:
JK Data Services Limited, a micro-entity incorporated recently in September 2023, shows a solid and stable financial foundation for its first full accounting period ending September 2024. The company exhibits healthy liquidity, positive net current assets, and a strong equity base relative to its size. However, the very early stage of operations and limited financial history mean there is limited data on profitability and cash flow trends, so cautious optimism is warranted.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	107,633	Represents cash, receivables, and short-term assets—a healthy level for working capital.
Current Liabilities	28,194	Short-term debts to be paid within a year; manageable relative to current assets.
Net Current Assets	79,439	Positive working capital (“healthy cash flow reserve”), indicating ability to meet short-term obligations.
Shareholders’ Funds (Equity)	79,439	Reflects owner investment and retained earnings; strong equity buffer for a new company.
Share Capital	2.00	Minimal paid-in capital, typical for micro entities but indicates reliance on retained earnings or loans.
Average Number of Employees	1	Small scale operation consistent with micro classification.

Financial Ratios / Indicators:

• Current Ratio: Current Assets / Current Liabilities = 107,633 / 28,194 ≈ 3.8
  Interpretation: Excellent short-term liquidity; the company can comfortably cover its immediate liabilities nearly four times over.

• Equity to Total Assets Ratio: Shareholders’ Funds / Total Assets ≈ 100% (since total assets less current liabilities = shareholders’ funds)
  Interpretation: The company is fully equity financed with no long-term debt, a very strong position indicating low financial risk.

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

JK Data Services Limited is in the early "startup" phase, indicated by its recent incorporation and micro-entity classification. Its financial "vital signs" show no symptoms of distress—there are no signs of liquidity crunch or over-leverage. The positive net current assets and strong equity position resemble a healthy patient with a strong immune system but limited endurance history.

The minimal share capital suggests that the company is relying primarily on initial owner investment and possibly internal funds rather than external financing, which often reduces financial strain.

However, the absence of profit and loss data and the short operational period mean the company’s longer-term viability and profitability remain untested. The single-employee setup also points to a lean operation, which can be advantageous for controlling costs but might limit scalability.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Establish Consistent Cash Flow Monitoring:
  Implement a routine cash flow forecasting system to anticipate future liquidity needs as the business grows, preventing any "symptoms" of cash shortages.

• Build Profitability Track Record:
  Focus on generating consistent profits to strengthen retained earnings, which will improve financial resilience and reduce dependency on external funding.

• Consider Capital Structure Optimization:
  Although the current equity position is strong, explore if a modest injection of capital (debt or equity) could accelerate growth without risking financial health.

• Maintain Compliance and Timely Filings:
  Continue to comply with Companies House filing deadlines to avoid penalties or reputational risks, especially as the company grows.

• Plan for Scaling:
  As operations increase, review working capital needs regularly to avoid potential liquidity stress and consider hiring or outsourcing to manage workload effectively.

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