Company Number: 13029196

Analysis Date: 2025-07-29 17:52 UTC

Financial Health Assessment Report for JULES SERVICES LTD.

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1. Financial Health Score: D

Explanation:
The company shows persistent signs of financial distress, particularly in its working capital management and liquidity position. Although it holds positive net assets on paper, the high level of current liabilities relative to current assets signals a liquidity crunch. This score reflects concerns about the company's ability to meet short-term obligations and maintain healthy cash flow.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	7,521	Small but slightly increasing investment in long-term assets
Current Assets	3,184	Limited liquid and short-term assets available
Current Liabilities	123,992	Very high short-term debts compared to current assets
Net Current Assets	-120,808	Negative working capital indicating liquidity stress
Total Net Assets	-113,287	Negative net assets showing liabilities exceed assets
Shareholders' Funds	-113,287	Equity is negative, indicating accumulated losses or debts
Average Employees	0	No employees, possibly indicating minimal operations
Share Capital	2.00	Minimal initial share capital contributed

Interpretation of Vital Signs:

• Negative working capital ("symptom of distress"): The company’s current liabilities heavily outweigh current assets by over £120k, indicating it may struggle to pay off short-term debts as they fall due. This is akin to a patient whose blood pressure is dangerously high—warning of an urgent issue.
• Negative net assets ("diagnostic alarm"): Total liabilities exceed total assets, implying insolvency on a balance sheet level. This is a critical symptom akin to organ failure that requires prompt intervention.
• No employees: The company operates without staff, indicating either a dormant or non-operational status or reliance on external contractors.
• Minimal fixed assets and share capital: Suggests limited investment and financial buffer.

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3. Diagnosis

JULES SERVICES LTD. is showing clear financial distress symptoms. Despite being an active private limited company incorporated in 2020, the balance sheet reflects a precarious financial state:

• Liquidity Crisis: The company’s current liabilities are approximately 39 times its current assets, signaling a severe liquidity shortage. This means the company may be unable to meet its bills on time, which could lead to insolvency if not remedied.
• Negative Equity: Shareholders’ funds are negative, indicating the company’s debts exceed its assets. This erodes shareholder value and can deter creditors and investors.
• Lack of Operational Scale: Zero employees and minimal fixed assets suggest limited business activity or a shift towards a non-operational phase.
• Frequent Name Changes and Director Turnover: The company changed names twice in recent years and has had several director resignations, which may reflect strategic uncertainty or restructuring efforts.

Overall, the company’s financial “vitals” resemble a patient with chronic illness — it is managing to survive but with ongoing symptoms that require careful monitoring and treatment.

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4. Recommendations

Immediate Actions (Stabilization Phase):

• Improve Liquidity Management: Prioritize negotiating payment terms with creditors to reduce current liabilities or extend deadlines. Consider securing short-term financing or overdraft facilities to ease cash flow pressures.
• Asset Realisation: Evaluate possibility of selling non-core fixed assets to generate cash and reduce liabilities.
• Cost Control: Given there are no employees, review any overheads or contractual obligations that can be trimmed to conserve cash.

Medium-Term Actions (Recovery Phase):

• Capital Injection: Consider raising additional equity capital to improve net assets and restore shareholder confidence. Even a micro-entity benefits from a stronger financial buffer.
• Operational Review: Reassess business model and income streams to ensure sustainable revenue generation. The current financials suggest minimal business activity and may require strategic pivot or consolidation.
• Financial Reporting and Monitoring: Ensure timely filing of accounts and returns continues to avoid penalties and maintain transparency with stakeholders.

Long-Term Actions (Health Maintenance):

• Establish robust financial controls and forecasting to detect early warning signs of distress.
• Build cash reserves to maintain a healthy buffer against future shocks.
• Engage professional financial advisory support to guide restructuring or turnaround efforts if needed.

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