JWST CONSULTING & SOLUTIONS LIMITED

Executive Summary

JWST CONSULTING & SOLUTIONS LIMITED shows a stable but weakening financial position with a significant reduction in liquid assets and net equity over the last year. While it maintains positive working capital and compliance, the company exhibits symptoms of financial tightening that require attention to cash flow and capital management. Proactive measures in monitoring liquidity and controlling costs are advised to preserve financial health and support future stability.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

JWST CONSULTING & SOLUTIONS LIMITED - Analysis Report

Company Number: 14175499

Analysis Date: 2025-07-29 12:20 UTC

Financial Health Assessment for JWST CONSULTING & SOLUTIONS LIMITED


1. Financial Health Score: C

Explanation:
The company shows a stable but diminished financial position over the last year. While it maintains positive net assets and no overdue filings, the sharp reduction in current assets and net assets signals a need for caution. The financial "vital signs" suggest the company is not in immediate distress but is experiencing symptoms of liquidity tightening and capital reduction.


2. Key Vital Signs

Metric 30 June 2024 30 June 2023 Interpretation
Fixed Assets £146 £293 Very low fixed assets typical of a micro entity; minimal investment in long-term assets.
Current Assets (Liquid Assets) £20,897 £81,454 Significant drop (~74%) in liquid assets, indicating reduced cash or receivables. Potential "cash flow cold sweat."
Current Liabilities £-483 (negative) £30,699 Negative current liabilities in 2024 means more receivables or prepayments than payables, an unusual but positive liquidity sign. Last year had significant short-term debt.
Net Current Assets (Working Capital) £21,380 £50,755 Decreased working capital (~58%), showing reduced short-term financial buffer. This is a symptom of tightening liquidity.
Total Assets Less Current Liabilities (Net Assets) £21,526 £51,048 Over 50% reduction in net assets, indicating capital erosion or distributions exceeding profits.
Shareholders’ Funds £21,526 £51,048 Mirrors net assets, showing shareholders’ equity is shrinking, a mild symptom of financial strain.
Employees 1 1 Very small scale operation, typical for a micro company.

3. Diagnosis: Financial Condition Assessment

JWST CONSULTING & SOLUTIONS LIMITED is a micro-sized private limited company operating in the IT and data processing sector. The company remains active and compliant with timely filing of accounts and confirmation statements, indicating good governance "vital signs."

However, the financial statements reveal a marked decrease in current assets and shareholders’ funds between 2023 and 2024. This suggests the company has experienced a contraction in liquid resources and overall capital base within one year. The negative current liabilities figure in 2024 implies that the company may have prepaid expenses or significant receivables, which can be a mixed signal—on one hand, positive liquidity, on the other, possible timing issues with cash inflows.

The small scale (one employee) and minimal fixed assets suggest a lean operational model, but the sharp fall in net assets could be a "symptom of underlying distress" such as reduced revenues, higher costs, or shareholder withdrawals.

No audit was required, and the accounts follow micro-entity provisions, indicating simplicity but also less external assurance on financial details.

Overall, the company is "stable but fragile," with enough liquidity to meet immediate obligations but showing warning signs of financial tightening.


4. Recommendations: Financial Wellness Improvement Actions

  • Cash Flow Monitoring: Implement rigorous cash flow forecasting to anticipate liquidity shortages early. The significant drop in current assets suggests the cash inflow cycle needs close management.
  • Cost Control: Review operating expenses carefully to arrest any erosion of shareholder funds. A lean structure must remain efficient.
  • Revenue Enhancement: Explore opportunities to boost sales or client contracts, especially given the IT consultancy and data processing focus.
  • Working Capital Management: Investigate the nature of current liabilities turning negative—ensure receivables are collectible and payments are timely.
  • Capital Injection: If the shareholder funds continue to decline, consider equity infusion or borrowings to strengthen the capital base and support growth or stabilization.
  • Regular Financial Reviews: Even as a micro company, periodic internal reviews or engagement with a financial advisor can help detect symptoms early before they become critical.
  • Maintain Compliance: Continue timely filing and adherence to Companies House requirements to avoid penalties and maintain business reputation.


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