JONATHAN HUGHES RAIL SERVICES LTD

Executive Summary

Jonathan Hughes Rail Services Ltd is a young, micro-sized business exhibiting strong liquidity and equity growth, indicating solid financial health. The company's financial "vital signs" show good short-term asset coverage and increasing retained earnings, though operational scale remains lean with no employees and minimal fixed assets. Moving forward, strategic investment in workforce and assets, alongside enhanced financial controls, will support sustainable growth and resilience.

JONATHAN HUGHES RAIL SERVICES LTD - Analysis Report

Company Number: 13429745

Analysis Date: 2025-07-29 13:33 UTC

Financial Health Assessment for Jonathan Hughes Rail Services Ltd

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1. Financial Health Score: B

Explanation: Jonathan Hughes Rail Services Ltd demonstrates a solid and improving financial position typical of a young micro-entity business. The company shows strong net current assets and positive shareholders' funds growth year-on-year, indicating healthy liquidity and equity growth. While there are no signs of immediate distress, the absence of audit and limited employee base suggests a need for cautious monitoring as the company scales. Hence a "B" grade reflects good health with room for strengthening operational robustness.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Fixed Assets	1,924	Minimal long-term assets, typical for a service-focused micro company.
Current Assets	110,629	Healthy level of liquid and short-term assets indicating good liquidity.
Current Liabilities	41,417	Current liabilities are well covered by current assets; however, these liabilities must be managed carefully.
Net Current Assets	152,046	Strong positive working capital, a "healthy cash flow" indicator ensuring operational agility.
Total Assets Less Current Liabilities	153,970	Indicates overall asset strength after short-term debts, robust for a young company.
Shareholders Funds	153,970	Equity growth from £38,663 in 2021 to £153,970 in 2024 reflects profitability and retained earnings.
Average Number of Employees	NIL (2024)	No employees currently reported, possibly reflecting subcontracting or owner-operated structure.

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3. Diagnosis: Financial Health Overview

Jonathan Hughes Rail Services Ltd presents a financial profile consistent with a young, micro-sized business specializing in railway construction services. The company has exhibited strong growth in equity and net current assets since inception in 2021, signaling increasing profitability or capital injection.

Symptoms of Strength:

• Increasing net current assets and shareholders’ funds show a "healthy cash flow" and accumulation of business value.
• Adequate liquidity to cover short-term obligations, minimizing immediate financial stress risks.
• No overdue filings, indicating good compliance discipline.

Symptoms for Attention:

• Fixed assets are minimal, which is common but suggests reliance on subcontractors or leasing rather than owning equipment.
• No employees reported in the latest year, which might limit scalability or operational capacity.
• Being a micro-entity, accounts are unaudited, which reduces external assurance on financial accuracy.
• The director is the sole key individual, which may concentrate operational risks.

In medical analogy, the company shows "strong pulse and blood pressure" in financial terms, but "muscle mass" (fixed assets and workforce) remains lean and could benefit from development to support growth.

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4. Recommendations: Steps to Improve Financial Wellness

1. Strengthen Operational Capacity:

   • Consider hiring or engaging regular employees to support workload and business growth.
   • Investing in fixed assets or long-term equipment could improve operational efficiency and asset base.

2. Enhance Financial Controls:

   • Although audit exemption is allowed, an internal or external review of accounts could improve confidence for stakeholders and lenders.
   • Implement robust cash flow forecasting and working capital management to maintain liquidity health.

3. Diversify Revenue and Capital Base:

   • Explore opportunities to increase turnover beyond micro thresholds to build business scale and resilience.
   • Consider equity financing or reinvestment of profits to support expansion plans.

4. Risk Management & Governance:

   • As the sole director, implement contingency plans for leadership continuity.
   • Regularly review compliance deadlines and statutory obligations to avoid penalties or reputational damage.

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