JSTP SERVICES LIMITED

Executive Summary

JSTP SERVICES LIMITED is demonstrating solid financial health with positive liquidity and growing equity, typical for a young micro-entity. The company maintains a stable financial footing with no immediate distress signals, though its small scale and concentrated ownership present some strategic risks. Focusing on asset growth, diversification, and governance enhancements will support sustainable expansion and resilience.

JSTP SERVICES LIMITED - Analysis Report

Company Number: 13646661

Analysis Date: 2025-07-20 11:35 UTC

Financial Health Assessment for JSTP SERVICES LIMITED (as of 30 September 2024)

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1. Financial Health Score: B

Explanation:
JSTP SERVICES LIMITED demonstrates stable and improving financial health typical of a micro-entity in its early years. The company shows a positive net asset position and growing working capital, indicating healthy liquidity and solvency. However, the scale of operations remains small with limited fixed assets and a single employee, suggesting room for growth and diversification to strengthen resilience.

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2. Key Vital Signs

Metric	2024	2023	Interpretation
Fixed Assets	£1,268	£0	Small investment in long-term assets, which is positive for future operations.
Current Assets	£23,986	£21,336	Adequate short-term resources to meet obligations; slight growth year-on-year.
Current Liabilities	£15,022	£14,365	Manageable short-term debts, increased slightly but well covered by current assets.
Net Current Assets (Working Capital)	£8,964	£6,971	Healthy working capital, showing ability to cover short-term liabilities with a comfortable buffer.
Total Assets Less Current Liabilities	£10,232	£6,971	Positive overall liquidity and solvency, improved from last year.
Shareholders Funds (Equity)	£10,232	£6,971	Growing equity base, indicating retained profits or capital injections enhancing financial stability.
Number of Employees	1	1	Small workforce consistent with micro-entity status.

Interpretation of Vital Signs:
The company maintains a strong liquidity position with net current assets substantially positive, which is akin to a patient having a strong pulse and good blood pressure—indicating healthy cash flow and ability to meet immediate obligations. The gradual increase in shareholders’ funds reflects the company’s strengthening financial "immune system," enabling it to withstand external shocks better.

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3. Diagnosis: Financial Condition Overview

Symptoms Analysis:

• Liquidity: JSTP SERVICES LIMITED shows no symptoms of distress; the positive working capital indicates the company can comfortably pay off short-term debts without financial strain.
• Solvency: The positive net assets and equity growth suggest the company is solvent and building a cushion against future uncertainties.
• Scale and Growth: Being a micro-entity with minimal fixed assets and a single employee, the company is in the early growth phase. The small scale limits operational flexibility but also reduces complexity and overhead.
• Director Influence: With a single director owning 75-100% of shares and voting rights, decision-making is streamlined but may lack external oversight, which could be a risk factor if unchecked.
• Compliance: The company is up to date with filings and accounts, which is a sign of good governance and reduces regulatory risks.

Overall Diagnosis:
JSTP SERVICES LIMITED is financially healthy for its size and age, showing no signs of distress or imbalance. It has a stable financial "heartbeat" with adequate liquidity and solvency, but it remains vulnerable to external shocks due to its small scale and concentrated control. The company is well-positioned to pursue growth opportunities but should monitor its capital structure and operational capacity.

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4. Recommendations: Steps to Improve Financial Wellness

• Build Fixed Assets Strategically: Consider reinvesting profits into fixed assets or technology that can enhance operational efficiency or expand service offerings, thereby strengthening the asset base.
• Diversify Revenue Streams: Explore expanding client base or service lines within advertising to reduce reliance on limited contracts and improve income stability.
• Strengthen Working Capital Management: Continue monitoring receivables and payables closely to maintain or improve liquidity levels, ensuring a "healthy cash flow."
• Plan for Scale: As the company grows, consider hiring additional skilled staff to spread operational risks and increase capacity.
• Governance and Oversight: If feasible, introduce advisory or non-executive directors to provide external perspectives and reduce concentration risk from single-person control.
• Maintain Compliance Discipline: Keep accounts and returns timely to avoid penalties and maintain stakeholder confidence.
• Prepare for Economic Variability: Set aside reserves or access to credit lines to cushion against market downturns, analogous to building an immune defense against financial shocks.

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