JOSHEE ASSET MANAGEMENT LTD

Executive Summary

JOSHEE ASSET MANAGEMENT LTD currently faces significant financial challenges characterized by negative net assets and a severe working capital deficit. Immediate focus on improving liquidity, managing liabilities, and strengthening equity is critical to stabilise operations and avoid deeper distress. Proactive financial management and potential capital support are recommended to restore balance and ensure sustainable growth.

JOSHEE ASSET MANAGEMENT LTD - Analysis Report

Company Number: 13889179

Analysis Date: 2025-07-20 19:16 UTC

Financial Health Assessment for JOSHEE ASSET MANAGEMENT LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress primarily due to negative net assets and substantial current liabilities exceeding current assets significantly. While it is a micro-entity and recently incorporated, the balance sheet reveals a fragile financial position that requires urgent attention to restore stability and solvency.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	105,430	Significant investment in long-term assets.
Current Assets	8,620	Limited liquid or short-term resources.
Current Liabilities	124,401	High short-term obligations, heavy burden.
Net Current Assets	-115,781	Severe working capital deficiency (“cash flow blockage”).
Total Assets Less Current Liabilities	-10,351	Overall negative position after covering short-term debts.
Net Assets / Shareholders’ Funds	-10,351	Company is technically insolvent on paper.
Share Capital	410	Minimal equity base; low financial buffer.

Interpretation:

• The negative net current assets indicate the company has more short-term debts than liquid assets available, a critical symptom of cash flow distress.
• The negative net assets suggest insolvency, meaning liabilities exceed total assets, a serious warning sign impacting creditor confidence and business viability.
• The fixed assets figure shows that the company holds tangible or intangible assets, but these are not sufficient to cover liabilities.
• Minimal share capital points to limited equity cushion to absorb losses or financial shocks.

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3. Diagnosis

Underlying Financial Health Condition:
JOSHEE ASSET MANAGEMENT LTD is currently experiencing symptoms akin to a patient with a “heart condition” — the company’s liquidity and solvency metrics are weak, indicating a critical need for financial intervention. The large imbalance between current liabilities and current assets signals a working capital crisis that could impair day-to-day operations and ability to meet short-term obligations.

The company’s negative net assets reveal it is “technically insolvent,” meaning if the company were to liquidate immediately, liabilities would exceed assets. This condition is concerning for creditors, investors, and stakeholders, as it raises risks of financial distress or enforcement actions.

Being a micro-entity incorporated recently (2022), the company may still be in a growth or investment phase, but the severity of the working capital shortfall requires urgent management focus.

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4. Recommendations

To improve financial wellness and restore health, the company should consider the following:

1. Improve Liquidity and Working Capital:

   • Accelerate collection of receivables and reduce any unnecessary inventory or expenses.
   • Negotiate extended payment terms with creditors to ease current liabilities pressure.
   • Explore short-term financing options such as credit lines or bridging loans to cover immediate cash flow gaps.

2. Reassess Asset Utilization:

   • Review fixed assets for potential sale or leaseback arrangements to generate cash without hampering operations.
   • Ensure asset valuations are accurate and aligned with market conditions.

3. Strengthen Equity Base:

   • Consider additional capital injections from shareholders or new investors to bolster the company’s financial foundation.
   • This will provide a buffer to absorb losses and improve solvency ratios.

4. Cost Control and Operational Efficiency:

   • Implement tight cost management to reduce unnecessary overheads, given the company currently has zero employees, focus on optimizing outsourced or contracted services.
   • Monitor cash flow closely with regular forecasts to anticipate liquidity shortfalls.

5. Financial Monitoring and Governance:

   • Establish robust financial reporting and early warning systems to detect signs of distress early.
   • Engage professional advisors to support restructuring or turnaround strategies if needed.

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