JSR BUSINESS SOLUTIONS LIMITED

Executive Summary

JSR BUSINESS SOLUTIONS LIMITED is currently operating with extremely thin financial buffers, showing symptoms of liquidity stress and minimal equity. While not insolvent, the business is vulnerable to financial shocks and requires urgent action to strengthen working capital and build reserves. With focused management on cash flow and equity enhancement, the company can stabilize and improve its financial health going forward.

JSR BUSINESS SOLUTIONS LIMITED - Analysis Report

Company Number: 14175066

Analysis Date: 2025-07-20 15:07 UTC

Financial Health Assessment for JSR BUSINESS SOLUTIONS LIMITED
As of 30 June 2024

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1. Financial Health Score: D

Explanation:
The company’s financial health score is graded as D, indicating weak financial vitality. While the company remains active and solvent, its extremely thin net asset base (£2) and minimal working capital leave it vulnerable to financial stress. The company shows symptoms of distress such as minimal liquidity buffer and negligible equity growth, which require urgent attention to avoid potential financial deterioration.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets	£2	Critically low, borderline insolvency risk
Current Assets	£5,430	Small cash and receivables pool
Current Liabilities	£5,428	Almost equal to current assets—tight liquidity
Net Current Assets (Working Capital)	£2	Virtually zero, indicating no buffer for short-term obligations
Shareholders’ Funds	£2	Equity at negligible level, shows no retained earnings
Employee Count	2	Small workforce consistent with micro entity status

Interpretation of Vital Signs:

• The company’s balance sheet shows a dangerously low net asset position, effectively indicating the business only just covers its liabilities.
• Working capital is essentially zero, meaning the company has no excess short-term assets to cover unforeseen expenses or delays in cash inflows—this is akin to a patient whose vital signs are barely stable.
• Despite doubling current assets from 2023 to 2024, liabilities have grown proportionally, negating net asset improvement.
• No fixed assets suggest no investment in long-term resources, common in micro-entities but limiting business resilience.
• Consistent staffing indicates stable operational scale but may also reflect fixed overheads relative to financial capacity.

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3. Diagnosis

JSR BUSINESS SOLUTIONS LIMITED’s financial “symptoms” reveal a company that is operating on a razor-thin margin of safety. The company’s balance sheet at the latest financial year-end shows that it is barely solvent with net assets of just £2. This razor-thin equity cushion suggests the company has minimal retained earnings or reserves and is highly vulnerable to any downturns in revenue or unexpected expenses.

The sharp increase in current liabilities from £600 to £5,428 over the last year, matched by a similar increase in current assets, indicates the company may be relying heavily on short-term creditor financing or delayed payments to suppliers. This “leveraging of short-term credit” is a symptom often seen in businesses struggling with cash flow management.

The absence of fixed assets means the company does not hold tangible long-term assets that might be leveraged or sold in financial distress, reducing financial flexibility.

Overall, the company is in a fragile financial state: it is not yet insolvent but is showing symptoms of financial stress that, if not addressed, could lead to liquidity crises or insolvency.

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4. Recommendations

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

a. Strengthen Working Capital Management

• Improve cash flow forecasting to anticipate short-term funding needs.
• Negotiate longer payment terms with suppliers to ease current liabilities.
• Accelerate collection of receivables where possible to boost liquidity.

b. Build Equity Reserves

• Retain earnings rather than distribute profits to build net assets.
• Consider a small capital injection from shareholders to bolster equity and create a buffer against future shocks.

c. Cost Control and Operational Efficiency

• Review operating costs closely to ensure expenditures align with revenue capacity.
• Evaluate employee productivity and roles given the small size and tight financial margins.

d. Explore Funding Options

• Investigate small business loans or overdrafts to provide a liquidity cushion.
• Consider grant funding or government support schemes for micro-entities, especially if cash flow is seasonal.

e. Strategic Business Review

• Assess the business model and market positioning given the SIC code (Other service activities not elsewhere classified) to identify revenue growth opportunities or diversification to stabilize income streams.

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Medical Analogy Summary

JSR BUSINESS SOLUTIONS LIMITED is like a patient presenting with dangerously low blood pressure (equity) and minimal oxygen saturation (working capital). Without immediate intervention to stabilize the vitals (cash flow and equity), the risk of collapse (insolvency) increases significantly. The company must improve these financial “vital signs” to restore health and resilience.

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