JMCRECOVERYS LTD

Executive Summary

JMCRECOVERYS LTD is in the early stages of its business lifecycle with a stable but fragile financial position characterized by minimal cash reserves and narrow working capital. While the company shows positive net current assets, cash flow management and building financial buffers are critical next steps. Focused efforts on improving liquidity and financial controls will help support sustainable growth and reduce risks associated with its small equity base.

JMCRECOVERYS LTD - Analysis Report

Company Number: 14787355

Analysis Date: 2025-07-20 17:36 UTC

Financial Health Assessment for JMCRECOVERYS LTD (as of 30 April 2024)

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1. Financial Health Score: C

Explanation:
As a start-up company incorporated in 2023 with a very short operating history, JMCRECOVERYS LTD shows signs of early-stage financial stability but with limited resources and scale. The positive net current assets and shareholders’ funds are encouraging "vital signs," but the very low absolute cash balance (negative £28) and small equity base imply the company is still in a nascent phase with a fragile financial buffer. The "C" grade reflects a company that is surviving but vulnerable to external shocks or operational hiccups without stronger cash reserves or profitability data.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1,217	Small asset base primarily in debtors; limited liquidity available.
Cash	(28)	Negative cash position signals a need to improve cash inflows or manage outflows more tightly.
Debtors	1,245	Receivables exceed cash, indicating sales made on credit; collection efficiency is critical.
Current Liabilities	1,143	Payables close to current assets, showing tight working capital; must be managed carefully.
Net Current Assets	74	Positive working capital is a "healthy pulse," but margin is narrow, indicating tight liquidity.
Shareholders’ Funds	74	Equity capital is minimal, typical for start-ups but limits financial resilience.
Average Employees	2	Very small team consistent with a micro/small enterprise status.

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3. Diagnosis

The company currently exhibits "symptoms of early-stage business" — it has a positive but very slim net current asset position and a slight negative cash balance, suggesting cash flow management is a key area of concern. The reliance on debtors indicates the business depends on timely payments to sustain liquidity. The absence of audited profit and loss data means profitability and operational efficiency cannot be fully assessed, but the small equity and minimal asset base suggest limited financial cushion.

The director, Jordan Michael Conlong, is the sole significant controller, which can be positive for streamlined decision-making but also concentrates risk if additional expertise or capital is needed. The company operates in the transportation support and used vehicle sales sectors, industries that can have variable cash flow cycles and require careful working capital management.

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4. Recommendations

1. Enhance Cash Flow Management:

• Prioritize collection of outstanding debtor balances to convert receivables into cash rapidly.
• Monitor and negotiate payment terms with creditors to avoid cash shortfalls.

2. Build Cash Reserves:

• Consider small injections of equity or short-term financing to buffer cash reserves and avoid negative cash positions.
• Explore cost control measures to reduce cash burn in the early stages.

3. Improve Financial Reporting:

• Maintain detailed internal profit and loss tracking to identify cash-generating activities and cost centers.
• Prepare for future audits or fuller accounts by ensuring robust accounting systems are in place.

4. Strategic Planning:

• Evaluate growth opportunities carefully to avoid overextension of limited resources.
• Consider bringing in advisory support or additional directors with financial expertise to strengthen governance.

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