JS RESILIENCE AND LEADERSHIP ADVISORY LIMITED

Executive Summary

JS Resilience and Leadership Advisory Limited is a newly established micro business showing early signs of financial stability with a positive but narrow working capital margin. The company’s reliance on director loans and minimal net assets highlight a fragile financial position typical of startups. To ensure long-term wellness, the business should focus on strengthening its equity base, managing cash prudently, and growing revenue streams.

JS RESILIENCE AND LEADERSHIP ADVISORY LIMITED - Analysis Report

Company Number: 14773810

Analysis Date: 2025-07-19 12:22 UTC

Financial Health Assessment for JS Resilience and Leadership Advisory Limited

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1. Financial Health Score: Grade C

Explanation:
As a newly incorporated micro-entity with minimal financial history, JS Resilience and Leadership Advisory Limited shows basic financial stability but with very limited net assets and modest working capital. The company is in the early "startup" phase, reflecting typical teething symptoms. While the current cash and asset position is positive, the extremely low net assets and reliance on director loans indicate vulnerability and limited financial resilience at this stage.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£3,537	Indicates cash or short-term receivables available to meet near-term obligations.
Current Liabilities	£3,116	Obligations due within one year, relatively close to current assets, posing some liquidity risk.
Net Current Assets (Working Capital)	£421	Positive but very slim margin; indicates a thin buffer to cover short-term debts.
Net Assets (Shareholders’ Funds)	£1	Extremely low equity base; essentially a "financial pulse" barely detectable.
Director Loan	£2,990	Reliance on unsecured, interest-free loan from director is a symptom of external financial support to sustain operations.
Dividends Paid to Director	£535	Outflow to shareholder despite minimal retained earnings; could strain limited resources.
Employee Count	Nil	No employees, reflecting very early stage or owner-operated business without payroll burden.
Accounting Category	Micro	Minimal filing requirements; small scale business.

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3. Diagnosis: Financial Condition Assessment

JS Resilience and Leadership Advisory Limited exhibits the classic signs of a very young micro business in its nascency stage. The company’s balance sheet shows a "healthy cash flow" symptom in that it has more current assets than liabilities, albeit by a narrow margin. However, the almost negligible net asset value indicates the company is just breaking even with virtually no retained profits or equity cushion.

The reliance on a director loan as a form of working capital support is a key symptom of fragile financial health. Although common in startups, it reveals limited external financing and points to a dependency on the owner’s personal liquidity. The payment of dividends while the net assets are minimal could be a concern as it may reduce the company's already thin financial buffer.

No employees other than the director suggest low operational overhead, which is positive for cash conservation but also indicates limited business scale to generate significant revenue or profit.

Overall, the company is in a stable but vulnerable state—akin to a patient recovering after a minor illness but still weak and requiring careful monitoring.

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4. Recommendations: Action Plan for Financial Wellness

• Strengthen Equity Base: Consider increasing shareholder funds to build a stronger capital foundation. This could be via additional director investment or external equity injection.
• Manage Dividends Prudently: Suspend or minimize dividends until a healthier profit reserve is established to avoid draining limited cash resources.
• Build Working Capital Buffer: Aim to grow net current assets beyond the minimal £421 to improve liquidity and reduce reliance on director loans.
• Formalize Director Loan Terms: If continued support is required, document clear repayment terms to avoid future disputes and maintain transparency.
• Focus on Revenue Growth: Develop client base and service offerings to generate consistent revenue, moving beyond reliance on owner capital.
• Monitor Cash Flow Closely: Implement regular cash flow forecasting to anticipate potential shortfalls and plan accordingly.
• Plan for Scaling: As the business matures, consider hiring to expand capacity and reduce single-person dependency risks.

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