JWT TRANSPORT LIMITED

Executive Summary

JWT TRANSPORT LIMITED is currently experiencing severe financial distress, evidenced by a shift from positive net assets to negative shareholders' funds, a collapse in current assets, and loss of fixed assets. This situation signals liquidity crises and equity erosion that threaten business viability. Immediate cash flow management, asset rationalization, and financial restructuring are critical to restore stability and prevent insolvency.

JWT TRANSPORT LIMITED - Analysis Report

Company Number: 14448228

Analysis Date: 2025-07-20 11:34 UTC

Financial Health Assessment of JWT TRANSPORT LIMITED

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1. Financial Health Score: D (Poor)

Explanation:
The company’s financial position has deteriorated markedly over the last year, moving from a positive net asset position of £9,397 in 2023 to a negative net asset position of £1,525 in 2024. This substantial decline into negative shareholders' funds signals financial distress, akin to a patient showing symptoms of severe illness requiring immediate intervention.

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2. Key Vital Signs (Financial Metrics) & Interpretation

Metric	2023 (£)	2024 (£)	Interpretation
Fixed Assets	5,740	0	Total fixed assets disappeared, indicating asset disposals or impairments—loss of business "bones".
Current Assets	11,220	7	Drastic decline in current assets, showing poor liquidity and "starvation" of working capital.
Current Liabilities	(6,879)	(1,172)	A reduction in current liabilities, but this is overshadowed by plummeting current assets.
Net Current Assets	4,341	(1,165)	Shift from healthy working capital to a deficit, indicating short-term liquidity crunch.
Net Assets (Shareholders Funds)	9,397	(1,525)	From positive equity to negative equity—"heart failure" of the company’s financial structure.
Average Employees	2	1	Workforce halved, possibly reflecting cost-cutting or contraction.

Additional Observations:

• The company is classified as a Micro entity, so filings are simplified, but the financial deterioration is stark even for this scale.
• The company is active, not in liquidation or administration, so the distress might be nascent but severe.
• The sole director and controlling shareholder is Mr. James William Taylor, indicating centralized control over decision-making.

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3. Diagnosis

JWT TRANSPORT LIMITED exhibits symptoms of acute financial distress:

• Liquidity Crisis: The drastic drop from £11,220 to £7 in current assets signals that cash or receivables have nearly vanished, impairing the company’s ability to meet short-term obligations.
• Negative Working Capital: Net current assets turning negative is a critical "red flag," implying the company owes more in the near term than it holds in liquid assets.
• Loss of Fixed Assets: The disappearance of fixed assets (£5,740 to £0) suggests either asset sales or write-offs, reducing operational capacity and long-term earning potential.
• Equity Erosion: Shareholders’ funds turning negative means the company’s liabilities exceed its assets, analogous to a patient with critical organ failure.
• Reduced Workforce: Halving the average employee count might reflect operational downsizing in response to financial pressures.

Together, these signs point to an unstable financial condition with a risk of insolvency if no corrective measures are taken. The company’s financial "immune system" is weakened, and it may struggle to sustain operations without intervention.

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4. Recommendations

To restore financial health and reverse symptoms of distress, JWT TRANSPORT LIMITED should consider:

a. Immediate Cash Flow Management:

• Conduct a thorough review of cash inflows and outflows to identify and plug leaks.
• Accelerate debtor collections and negotiate extended payment terms with creditors.
• Explore short-term financing options (e.g., overdrafts, invoice financing) to stabilize liquidity.

b. Asset and Cost Rationalization:

• Assess fixed assets disposition to ensure sales are strategic, not forced fire sales.
• Reduce non-essential expenses and overheads to conserve cash.
• Reassess staffing levels carefully to balance cost savings with operational needs.

c. Strategic Financial Restructuring:

• Engage with lenders and stakeholders early to renegotiate terms and avoid insolvency proceedings.
• Consider raising additional equity capital to restore positive net assets.
• Develop a realistic business plan focusing on profitability and sustainable growth.

d. Ongoing Monitoring & Governance:

• Implement monthly financial reviews to detect early warning signs.
• Board and director to strengthen governance and transparency to reassure stakeholders.
• Seek professional advisory support for turnaround planning.

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