JS SERVICES SCOTLAND LTD

Executive Summary

JS SERVICES SCOTLAND LTD shows signs of financial distress, with negative net assets and working capital deficits indicating liquidity and solvency issues. Despite operational continuity, urgent actions to improve cash flow, reduce costs, and strengthen capital are recommended to stabilize the company’s financial health and ensure sustainable growth.

JS SERVICES SCOTLAND LTD - Analysis Report

Company Number: SC697886

Analysis Date: 2025-07-29 14:56 UTC

Financial Health Assessment for JS SERVICES SCOTLAND LTD

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1. Financial Health Score: D

Explanation:
The company shows clear symptoms of financial distress, particularly evident in its negative net current assets and net liabilities position for the most recent two years. While it is operational and has maintained a small workforce, the financial metrics indicate liquidity challenges and potential difficulties in meeting short-term obligations. This score reflects a concerning but not yet critical state.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	546	160	Slight improvement but still very low cash and receivables.
Current Liabilities	1,681	2,167	High short-term debts relative to assets.
Net Current Assets (Working Capital)	-1,135	-2,007	Negative – signals liquidity problems, inability to cover short-term debts from current assets.
Net Assets (Shareholders’ Funds)	-1,135	-2,007	Negative – company’s liabilities exceed its assets, indicating solvency concerns.
Share Capital	100	100	Very low capital base, typical for micro-entities.
Average Number of Employees	2	2	Stable workforce size, small operation.

Interpretation of Vital Signs:
The company’s "vital signs" display a persistent deficit in working capital, meaning it is likely struggling to maintain a "healthy cash flow" necessary to sustain daily operations without external funding or credit. Negative net assets suggest that total liabilities surpass the value of total assets, a condition akin to a patient with "organ failure"—a serious issue for long-term viability.

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3. Diagnosis

JS SERVICES SCOTLAND LTD is currently operating under financial strain. The persistent negative net current assets and net liabilities reveal underlying "symptoms of distress," such as inadequate liquidity and solvency challenges. The company's balance sheet indicates that it owes more than it owns, which can limit its ability to invest, grow, or even meet creditor demands promptly.

The stable employee count suggests operational continuity, but without improved financial management, the risk of insolvency increases. The company is still active and compliant with filing deadlines, showing good governance discipline despite financial challenges.

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4. Recommendations

To improve the financial wellness of JS SERVICES SCOTLAND LTD, consider the following actions:

• Improve Cash Flow Management:
  Prioritize collecting receivables faster and negotiate better payment terms with suppliers to reduce current liabilities pressure. Implement stricter credit control procedures.

• Cost Control and Expense Reduction:
  Review and reduce non-essential expenses. With only 2 employees, labor costs might already be lean, so focus on overheads and discretionary spending.

• Capital Injection:
  Explore opportunities for additional equity investment or shareholder loans to improve the capital base and reduce net liabilities.

• Review Pricing and Revenue Streams:
  Assess if current pricing covers costs adequately and explore ways to increase sales or diversify services to boost income.

• Monitor Financial Health Regularly:
  Establish monthly financial reviews to detect early warning signs and adjust strategies promptly — think of this as routine "health check-ups."

• Seek Professional Advice:
  Given the financial symptoms, consulting with a financial advisor or insolvency practitioner early can help design turnaround strategies and avoid critical failure.

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