Company Number: 14195371

Analysis Date: 2025-07-20 18:35 UTC

Financial Health Assessment for JOCOH LTD (Year ending 30 June 2024)

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1. Financial Health Score: B-

Explanation:
JOCOH LTD demonstrates a generally stable financial position with positive net assets and working capital. However, notable declines in cash reserves and net assets compared to the previous year, alongside limited scale and a single employee, suggest moderate financial resilience but some cautionary signals. The company is not in distress but exhibits symptoms that warrant proactive management.

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2. Key Vital Signs

Metric	2024 Value	2023 Value	Interpretation
Net Assets	£12,074	£15,162	Healthy net assets indicate positive equity, but a 20% drop signals asset base shrinking.
Cash at Bank	£11,014	£22,670	Cash halved in a year, reducing liquidity cushion; potential early symptom of cash flow strain.
Net Current Assets (Working Capital)	£7,805	£11,326	Positive working capital but declining, indicating less buffer to meet short-term liabilities.
Current Liabilities	£3,779	£11,344	Current liabilities reduced significantly, easing short-term pressure.
Fixed Assets	£5,271	£4,736	Small increase, showing some investment in tangible assets.
Shareholders’ Funds	£11,974	£15,062	Reflects the net assets and retained earnings; consistent with net asset decline.
Employees	1	1	Very small workforce, typical of micro/small company status, limiting operational scale.
Deferred Tax Liability	£1,002	£900	Slight increase reflecting timing differences in tax accounting.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity and Cash Flow:
  The cash balance has dropped sharply by nearly 50%, a key symptom indicating the company may be using cash reserves to fund operations or investments. While current liabilities have decreased, the reduction in cash suggests potential pressure on short-term cash flow if this trend continues.

• Working Capital:
  Positive net current assets mean the company currently holds a healthy buffer to cover its short-term debts. However, the decline from £11,326 to £7,805 points to less wiggle room and a need to monitor receivables and payables closely.

• Asset Base and Capital Structure:
  The company’s fixed assets have increased modestly, showing some investment in tangible assets such as fixtures and IT equipment. Net assets and shareholders' funds have decreased by about 20%, which could be due to operational losses or depreciation outweighing profits. This shrinkage is a mild symptom of operational strain but not yet critical.

• Profitability and Reserves:
  The profit and loss reserve declined from £15,062 to £11,974, indicating that retained earnings have been consumed, likely by operating expenses or depreciation exceeding income. The absence of an income statement limits detailed profitability diagnosis but suggests the company may be operating at or near break-even or a slight loss.

• Scale and Operational Capacity:
  With only one employee (likely the director), the company operates on a micro scale. This limits operational capacity and diversification, increasing vulnerability to single points of failure or market fluctuations.

• Compliance and Filing:
  The company is current with filings, avoiding penalties and maintaining legal health.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Strengthen Cash Flow Management:
  Investigate the causes of cash depletion and implement tighter cash flow controls. Consider negotiating payment terms with customers and suppliers to improve cash conversion cycles.

• Boost Profitability:
  Conduct a detailed review of income and expenses to identify cost-saving opportunities. Explore avenues to increase turnover through additional contracts or services in quantity surveying and construction sectors.

• Enhance Working Capital Monitoring:
  Regularly monitor debtors and creditors to prevent working capital erosion. Improve credit control measures to ensure timely collection of receivables.

• Consider Incremental Staffing or Outsourcing:
  To reduce operational risk from limited human resources, consider hiring or outsourcing key functions to enhance capacity and business continuity.

• Plan Asset Investments Carefully:
  Align fixed asset acquisition with strategic growth plans to avoid unnecessary capital tie-up and depreciation burden.

• Review Tax Planning:
  Engage with tax advisors to optimize tax liabilities, especially considering deferred tax provisions.

• Scenario Planning and Risk Assessment:
  Prepare for potential adverse market conditions by stress-testing cash flow and profitability forecasts.

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Medical Analogy Summary:
JOCOH LTD's financial "vital signs" show a company in a generally stable but cautious state—similar to a patient with good baseline health but early signs of fatigue and resource depletion. The cash flow dip is akin to reduced energy reserves, signaling the need for immediate lifestyle adjustments (financial controls and efficiency improvements) to avoid further deterioration. With attentive management, the company can recover its financial vitality and sustain growth.

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