JRB CONSULTING LTD

Executive Summary

JRB CONSULTING LTD shows a generally stable but weakening financial position with declining liquidity and net assets. While not in immediate danger, these "symptoms" suggest the company should proactively manage cash flow and profitability to avoid financial distress. Strengthening working capital and rebuilding equity will be key to maintaining financial health going forward.

JRB CONSULTING LTD - Analysis Report

Company Number: 13221833

Analysis Date: 2025-07-29 13:54 UTC

Financial Health Assessment for JRB CONSULTING LTD

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1. Financial Health Score: C

Explanation:
The company demonstrates moderate financial stability but shows signs of emerging liquidity constraints and reduced net asset strength compared to the prior year. While not in immediate distress, the downward trend in net current assets and net assets signals some early symptoms of financial stress that should be addressed proactively.

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2. Key Vital Signs

Vital Sign	2024 Value	Interpretation
Fixed Assets	£1,283	Minimal investment in long-term assets; typical for micro consulting firm.
Current Assets	£84,389	Healthy pool of short-term assets, primarily cash/debtors.
Current Liabilities	£65,139	Increased liabilities within one year; caution warranted.
Net Current Assets	£19,250	Positive but significantly declined from £49,943 in prior year; indicates tighter liquidity.
Net Assets / Shareholders Funds	£20,533	Reduced from £50,150; signals erosion of equity base.
Employee Count	1	Small, manageable workforce consistent with micro entity.
Share Capital	£1	Minimal capital injection; reliant on retained earnings.

Interpretation of Vital Signs:

• The "healthy cash flow" indicated by current assets remains, but the substantial rise in current liabilities suggests the company may be experiencing increased short-term financial obligations.
• A marked decrease in net current assets (working capital) signals a "symptom of distress" in liquidity, potentially impacting the ability to meet short-term debts comfortably.
• The erosion of net assets/shareholders funds by more than half in one year suggests a reduction in retained earnings or possible losses, which could weaken the company’s financial resilience.

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3. Diagnosis

JRB CONSULTING LTD is currently operational and classified as a micro-entity in the environmental consulting sector. The company has maintained positive net assets and a positive working capital position, which are fundamental signs of financial health. However, the sharp decline in net current assets and net equity during the 2023-2024 financial year is a warning sign.

This "financial symptom" may be attributed to increased current liabilities or lower profitability (profit and loss account not disclosed). The company’s minimal share capital and small workforce are typical for its size and sector but also mean less buffer against financial shocks.

The absence of an audit and limited disclosures under micro-entity filing standards reduce transparency, making it important to carefully monitor liquidity and profitability trends.

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4. Recommendations

To improve financial wellness and prevent worsening of the "financial symptoms," the company should consider:

• Strengthen Liquidity Management:
  Closely monitor and manage current liabilities to avoid cash flow strain. Negotiate better payment terms with creditors and improve debtor collection processes.

• Review Profitability and Costs:
  Since the P&L is not publicly available, internally assess whether the decline in net assets is due to operational losses. Identify opportunities to reduce costs or increase revenues.

• Build Capital Reserves:
  Consider injecting additional equity or retaining more earnings to rebuild shareholders’ funds, improving financial cushioning.

• Forecast and Plan:
  Implement robust financial forecasting to anticipate cash flow needs and plan for contingencies.

• Maintain Compliance and Transparency:
  Continue timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.

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