J.M.B UTILITIES LTD

Executive Summary

J.M.B Utilities Ltd currently maintains a stable financial condition with positive net assets and working capital, indicating the ability to meet short-term obligations. However, a significant decrease in current assets and net worth signals early financial strain, warranting careful cash flow and debt management. With proactive financial controls and strategic planning, the company can improve its financial wellness and support sustainable growth.

J.M.B UTILITIES LTD - Analysis Report

Company Number: 13132084

Analysis Date: 2025-07-19 12:55 UTC

Financial Health Assessment of J.M.B Utilities Ltd (as of 31 January 2024)

---

1. Financial Health Score: B-

Explanation:
J.M.B Utilities Ltd shows a stable financial position with positive net assets and healthy working capital. However, there are early warning signs such as a reduction in net assets and current assets compared to the previous year, which suggest some financial contraction. The business is still in a growth or stabilization phase after incorporation in 2021, but careful attention is needed to maintain liquidity and asset base.

---

2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	43,018	48,207	Slight decrease; possibly asset disposals or depreciation.
Current Assets	86,530	154,719	Significant drop indicating lower cash, receivables or stock.
Current Liabilities	(2,970)	(34,475)	Reduced short-term obligations, positive sign for liquidity.
Net Current Assets (Working Capital)	83,560	120,244	Decreased but still strong; working capital remains positive.
Creditors after 1 year	10,664	0	New long-term liabilities introduced, increasing financial leverage.
Net Assets (Equity)	125,802	168,451	Decline in net worth; suggests retained losses or distributions.
Share Capital	1.00	1.00	Minimal equity capital; typical for micro-entity.
Number of Employees	1	1	Very small operation; owner/operator setup.

Interpretation of Vital Signs:

• Healthy cash flow signs: Positive net current assets show that the company can cover short-term obligations comfortably, which is like a “healthy pulse” in financial terms.
• Symptoms of distress: The decline in both current assets and net assets signals potential operational contraction or cash outflows beyond inflows. Introduction of longer-term creditors adds some financial strain akin to “new stress on the cardiovascular system.”
• Asset base: Fixed assets slightly declined, possibly due to depreciation or disposal of equipment, which is common but needs monitoring.

---

3. Diagnosis: Overall Financial Condition

J.M.B Utilities Ltd is a micro-sized private limited company operating in the construction of utility projects sector. The financial statements indicate that the company remains solvent with net assets well above zero and positive working capital, which are critical “vital signs” for business health.

However, the notable decrease in current assets and net assets within one year is a symptom that the company may be facing challenges in maintaining its liquidity or profitability. The appearance of creditors due after more than one year also suggests new financing, which could be beneficial if used for growth but also adds financial risk if not managed properly.

The company’s very small scale (only one employee/director) further implies limited operational capacity and potential vulnerability to market fluctuations or unexpected expenses.

---

4. Recommendations to Improve Financial Wellness

1. Cash Flow Management:
   Strengthen cash flow forecasting to prevent liquidity crunches. Since current assets declined sharply, focus on accelerating debtor collections and managing inventory effectively to maintain a “healthy cash flow” rhythm.

2. Cost Control and Profitability:
   Review operational costs and pricing strategies. The decline in net assets might be due to losses or dividend payouts. Avoid unnecessary expenses and seek to improve profit margins.

3. Debt Monitoring:
   Carefully monitor the new long-term creditors. Ensure that repayment schedules and interest costs do not strain the company’s finances. Consider refinancing options if necessary to reduce financial burden.

4. Asset Utilization:
   Evaluate fixed assets to ensure efficient use. If assets are underutilized or obsolete, consider disposal or reinvestment to optimize operational capacity.

5. Growth Planning:
   As a micro-entity, consider strategies to gradually scale operations and diversify revenue streams to improve financial resilience.

6. Regular Financial Review:
   Maintain regular reviews of financial statements to detect early symptoms of financial stress and take prompt action.

---