JODI CARR PROJECTS LTD

Executive Summary

JODI CARR PROJECTS LTD operates as a small, owner-led architectural practice with limited financial resources and no employees. The recent decline in cash reserves and net assets suggests tightening liquidity, posing a mild risk to operational stability. With prudent cash flow management and efforts to increase project volume, the company can stabilize and improve its financial health moving forward.

JODI CARR PROJECTS LTD - Analysis Report

Company Number: 14366935

Analysis Date: 2025-07-29 12:43 UTC

Financial Health Assessment Report for JODI CARR PROJECTS LTD
As of Financial Year Ending 30 September 2024

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1. Financial Health Score: Grade C

Explanation:
JODI CARR PROJECTS LTD shows signs of modest financial stability but also reveals symptoms of cash flow constraints and limited asset growth. The company operates within the micro-entity category with very minimal current assets and negligible liabilities, which is typical for a start-up or small architectural practice. However, the significant drop in net current assets and net assets from 2023 to 2024 signals a potential weakening in financial resilience.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Current Assets	554	1,427	Strong drop indicates reduced liquid resources; "weakened pulse" in cash availability.
Current Liabilities	2	81	Very low liabilities, indicating minimal short-term debt obligations.
Net Current Assets	552	1,346	Reduced working capital signals potential liquidity stress.
Net Assets / Shareholders’ Funds	552	1,346	Decline in equity base; "shrinking healthy reserves."
Average Number of Employees	0	0	No staff employed, suggesting a sole proprietor or contractor model.
Audit Status	Exempt	Exempt	Small company exemption; limited external financial scrutiny.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity and Cash Flow (Vital Signs):
  The company’s current assets have dropped by over 60% in one year, from £1,427 to £554, while current liabilities have decreased as well but remain minimal. This indicates a reduced cash buffer and working capital. While the company is not burdened by debt ("no symptoms of distress from creditors"), the shrinking cash reserves suggest "tightening blood flow" in operational liquidity.

• Capital Structure and Resilience:
  Net assets decreased from £1,346 to £552, reflecting either operational losses or withdrawals by the owner. Given the absence of employees and the micro-entity status, the business appears to be in an early development or low-activity phase, with limited investment in fixed assets or growth initiatives ("a fragile heart needing careful monitoring").

• Operational Health:
  No employees and a single director who is also the sole shareholder indicate a small personal practice setup. The architectural activity likely depends heavily on the director's personal input and contract wins. This business model, while low cost, lacks scalability and may be vulnerable to fluctuations in project flow ("business rhythm is delicate and dependent on one vital organ").

• Compliance and Governance:
  The company is current with its filings and not overdue on accounts or confirmation statements. Exemption from audit aligns with the micro-entity status but means less external validation of financial health.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Strengthen Cash Flow Management:

   • Monitor cash inflows and outflows closely to avoid liquidity shortages.
   • Consider building a modest cash reserve equal to at least 3 months’ operating expenses to provide a financial cushion.

2. Increase Revenue or Diversify Client Base:

   • Explore additional architectural projects or consultancy services to increase turnover and rebuild working capital.
   • Engage in marketing efforts or professional networking to secure a steadier pipeline of contracts.

3. Cost Control and Expense Monitoring:

   • Maintain low overheads to preserve cash flow, especially since there are no employees.
   • Regularly review any recurring expenses or supplier terms to optimize costs.

4. Financial Reporting and Forecasting:

   • Implement simple budgeting and forecasting tools to anticipate cash needs and identify potential financial "symptoms" early.
   • Even without statutory audit requirements, consider periodic external review or advice to detect financial risks.

5. Consider Long-term Growth Planning:

   • Evaluate the feasibility of hiring support staff or subcontractors to expand capacity when financially viable.
   • Plan for potential investment in fixed assets or technology to improve operational efficiency.

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