JWPR LTD

Executive Summary

JWPR LTD is currently experiencing significant financial distress with substantial negative equity and liquidity shortfalls. The company relies heavily on director loans to sustain operations, signaling urgent need for financial restructuring and improved cash flow management. Immediate corrective actions are essential to restore financial health and secure the company’s future viability.

JWPR LTD - Analysis Report

Company Number: 13157060

Analysis Date: 2025-07-20 14:41 UTC

Financial Health Assessment Report for JWPR LTD

---

1. Financial Health Score: D

Explanation:
JWPR LTD exhibits significant financial distress signals, particularly a large and growing shareholders’ deficit and persistent negative net current assets (working capital). The company is operating with a negative equity base and current liabilities far exceeding current assets, indicating liquidity challenges. While operational continuity is currently supported by directors, the financials show symptoms of severe strain akin to a patient with impaired vital signs needing urgent intervention.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Shareholders’ Funds	-44,135	Negative equity indicates liabilities exceed assets; akin to a patient with vital organ dysfunction.
Net Current Assets	-80,659	Current liabilities vastly exceed current assets; poor liquidity, potential cash flow "blockage".
Fixed Assets	36,525	Tangible assets primarily motor vehicles; asset base is present but may not be easily liquidated.
Current Liabilities	80,765	High short-term debt obligations; risk of insolvency if debts cannot be met.
Cash at Bank	105	Minimal cash reserves; "low blood pressure" equivalent in cash flow health.
Director Advances	80,500	Significant director loan balances; signals reliance on insider funding to support operations.
Profit and Loss Reserve	-44,135	Accumulated losses mirroring negative equity; "chronic illness" in profitability.

---

3. Diagnosis: Financial Condition Analysis

JWPR LTD is currently in a precarious financial state. The company’s liabilities, especially current liabilities, far outstrip its liquid assets and working capital, creating a severe liquidity crunch. The negative shareholders’ funds reflect cumulative losses, eroding the company’s capital base and signaling poor profitability or sustained losses since inception.

The reliance on director loans (notably Mr. J Robson’s advances increasing to £80,500) indicates the company is receiving external support akin to a patient on life support. This support suggests that without director intervention, the company may face immediate insolvency risks.

Fixed assets are mainly motor vehicles valued at £36,525, which may have limited liquidity value relative to the liabilities. The company shows no significant increase in cash reserves, with only £105 available, indicating a "dehydrated" cash flow position unable to meet short-term obligations comfortably.

The company’s going concern assumption is based on directors’ support, not operational cash generation, highlighting underlying business health issues.

---

4. Recommendations: Prescriptions for Financial Wellness

1. Urgent Liquidity Management:

   • Negotiate with creditors to restructure or extend payment terms to alleviate immediate cash flow pressures.
   • Explore options for short-term financing or capital injection beyond director loans to reduce reliance on insider funding.

2. Capital Restructuring:

   • Consider recapitalisation to restore positive equity, possibly through new equity investment or debt-to-equity swaps.
   • Review asset utilisation and potential sale of non-core assets to improve cash position.

3. Cost Control and Profitability Improvement:

   • Conduct a thorough review of operating expenses and identify areas for cost reduction.
   • Focus on improving revenue streams or diversifying income to reduce dependency on director support.

4. Enhanced Financial Monitoring:

   • Implement rigorous cash flow forecasting to detect and manage liquidity risks proactively.
   • Regular financial health check-ups (monthly or quarterly) to monitor "vital signs" and adjust strategies promptly.

5. Governance and Transparency:

   • Ensure directors comply with their fiduciary duties to prevent wrongful trading risks.
   • Maintain transparent communication with stakeholders about financial position and recovery plans.

---

Medical Analogy Summary

JWPR LTD’s financial condition resembles a patient suffering from chronic illness with severely weakened vital signs: negative equity (organ failure), negative working capital (circulatory shock), and minimal cash reserves (hypovolemia). The company is surviving due to external life support (director loans), but without urgent medical intervention (financial restructuring and liquidity management), the prognosis is poor.

---