JR SOCIAL CARE LIMITED

Executive Summary

JR SOCIAL CARE LIMITED shows a positive and improving financial condition with strong liquidity and growing equity, which are good signs of financial health for a young micro-entity. While the balance sheet is robust, the absence of profit and loss data leaves some uncertainty around profitability and cash flow stability. Continued careful management of short-term liabilities and enhanced financial reporting will support sustained financial wellness.

JR SOCIAL CARE LIMITED - Analysis Report

Company Number: 14226949

Analysis Date: 2025-07-19 13:05 UTC

Financial Health Assessment for JR SOCIAL CARE LIMITED (as of 31 July 2024)

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1. Financial Health Score: B

Explanation:
JR SOCIAL CARE LIMITED exhibits a sound financial foundation with positive net assets and improving working capital. The company's balance sheet reveals growth in equity and liquidity, indicating a generally healthy financial posture for a micro-entity in its early years. However, the limited size, absence of profit and loss data, and a slight decline in fixed assets warrant cautious optimism rather than an unqualified A grade.

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2. Key Vital Signs (Core Financial Metrics & Interpretation)

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	1,184	1,480	Slight decrease; minimal reliance on long-term assets.
Current Assets	63,733	26,843	Significant increase; strong short-term resources, mainly cash/debtors.
Current Liabilities	49,145	20,793	Increase in short-term obligations; must monitor payment schedules.
Net Current Assets (Working Capital)	14,588	6,050	Healthy positive working capital, doubled in a year – good liquidity sign.
Net Assets / Shareholders' Funds	15,772	7,530	Equity more than doubled, reflecting retained earnings or capital injection.
Employee Count	16	20	Decreased workforce; potential efficiency or cost-cutting measure.

Interpretation:

• The company’s working capital is positive and growing, a vital "heartbeat" indicating it can cover short-term debts — a sign of healthy cash flow and operational stability.
• The increase in current liabilities is notable but balanced by a larger increase in current assets, maintaining a comfortable liquidity cushion.
• The decline in fixed assets is minimal and likely not a concern given the nature of the business (temporary employment and consultancy).
• Doubling of net assets suggests the company is building financial reserves, possibly from retained profits or capital contributions.
• A minor drop in employee numbers may reflect operational adjustments but should be monitored for impact on service delivery.

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3. Diagnosis (What the Numbers Reveal About Business Health)

JR SOCIAL CARE LIMITED is a young micro-entity (incorporated 2022) operating in temporary employment and management consultancy sectors. The financial "vital signs" indicate improving liquidity and equity base, suggesting the company is growing and managing its short-term obligations effectively. The positive working capital and net asset growth suggest no immediate distress or financial strain.

The absence of published profit and loss data limits insight into profitability and cash flow dynamics, akin to a patient with a strong pulse but incomplete blood work. The increasing current liabilities require ongoing monitoring to avoid symptoms of cash flow stress. The reduction in employee count might be a strategic response to market conditions or cost control, but it should not hamper operational capacity.

Director and shareholder control is concentrated (Clara Lyn Ross owns 75-100%), indicating centralized decision-making, which can be advantageous for agile management but may concentrate risk.

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4. Recommendations (Actions to Improve Financial Wellness)

• Prepare and Review Profit and Loss Statements Regularly:
  To fully understand profitability and cash flow patterns, the company should generate and review detailed profit and loss accounts, even if not mandatory, to detect any early symptoms of financial distress.

• Monitor Current Liabilities Closely:
  The rising short-term debts should be managed carefully to maintain a healthy liquidity ratio, ensuring creditors are paid on time to avoid penalties or strained supplier relationships.

• Cash Flow Forecasting:
  Implement robust cash flow projections to anticipate periods of tight liquidity and proactively manage working capital.

• Employee Resource Planning:
  Evaluate the impact of reduced staff numbers on business operations to avoid overburdening remaining employees and maintain service quality.

• Build Fixed Asset Base Judiciously:
  While fixed assets are minimal, consider necessary investments in equipment or technology that can improve operational efficiency without overextending resources.

• Governance and Transparency:
  Maintain clear records and transparency in financial reporting to support stakeholder confidence and facilitate any future fundraising or credit applications.

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