L J ESTATES LIMITED

Executive Summary

L J ESTATES LIMITED is a young micro-entity showing early signs of financial stability with positive working capital and increasing shareholders’ funds. While the company is currently solvent and compliant, its small operational scale and limited financial cushion suggest cautious optimism. Strengthening cash reserves and developing business operations will be key to improving the company’s long-term financial health.

L J ESTATES LIMITED - Analysis Report

Company Number: 13971082

Analysis Date: 2025-07-29 18:16 UTC

Financial Health Assessment Report for L J ESTATES LIMITED

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1. Financial Health Score: C

Explanation:
L J ESTATES LIMITED shows a positive net asset position and an improving balance sheet from inception in 2022 through the latest accounts in 2024. However, the overall financial scale and resources remain modest, typical of a micro-entity in its early stage. The company is solvent with healthy working capital but has limited financial buffer and no employees, indicating a nascent stage of operational development. The grade reflects stable but very early-stage financial health with room for growth and resilience improvement.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	6,917	Indicates available short-term resources such as cash or receivables; increased from £100 in 2023 reflecting some growth in liquidity.
Current Liabilities	4,141	Short-term debts to be settled within a year; presence requires monitoring cash flow to ensure timely payments.
Net Current Assets	2,776	Positive working capital signifies the company can cover near-term obligations without distress—a healthy "cash flow pulse."
Shareholders’ Funds	2,776	Reflects net worth; an increase from £100 in 2023 shows capital injection or retained earnings buildup—positive equity health.
Employees	Nil	No employees indicate minimal operational scale; typical for a micro-entity but could impact growth potential.
Audit Status	Exempt	Micro-entity exemption applies; while cost-saving, it limits external assurance on financial accuracy.

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3. Diagnosis: Financial Condition Insights

• Solvency and Liquidity: The company maintains positive net current assets (working capital), a fundamental indicator of liquidity health. This suggests no immediate risk of insolvency or cash flow strain, akin to a patient with stable vital signs.

• Growth Trajectory: From £100 net assets in 2023 to £2,776 in 2024, the company shows early-stage capital growth. This is a positive symptom of capital infusion or operational progress.

• Operational Scale: Absence of employees and minimal asset base suggest the company is in its infancy or is operating a very lean model. This limits operational capacity but keeps overheads low.

• Risk Factors: The small scale and limited financial buffer mean the company is vulnerable to unexpected expenses or market shocks, similar to a patient with a mild but manageable condition requiring careful monitoring.

• Governance and Transparency: Directors are identified and active; no disqualifications or adverse records noted, indicating clean governance "history."

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4. Recommendations: Steps to Improve Financial Wellness

• Enhance Cash Reserves: Build a stronger cash buffer to improve resilience against unexpected costs or downturns—similar to building immunity strength.

• Develop Revenue Streams: If not already initiated, focus on increasing business activities to grow turnover and move beyond micro-entity scale. This could involve investing in marketing or expanding service offerings.

• Consider Hiring or Outsourcing: Adding operational capacity through staff or third parties can foster growth, though it requires balancing increased expenses.

• Maintain Timely Filings: Continue compliance with Companies House filing deadlines to avoid penalties and maintain good standing.

• Review Financial Controls: Even as a micro-entity, implement basic financial controls and budgets to monitor cash inflows and outflows closely.

• Plan for Audit Readiness: As the company grows, prepare for the transition to a full audit which brings external validation and investor confidence.

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