JARYAH LIMITED

Executive Summary

JARYAH LIMITED shows a generally healthy financial position with strong liquidity and positive equity, though recent declines in current assets and net assets warrant cautious monitoring. Growth in staff signals expansion but requires careful cash flow and cost management to maintain financial wellness. Strategic focus on cash flow forecasting, cost control, and profit retention will support sustained health and growth.

JARYAH LIMITED - Analysis Report

Company Number: 12522096

Analysis Date: 2025-07-29 14:54 UTC

Financial Health Assessment: JARYAH LIMITED (as of 31 March 2024)

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1. Financial Health Score: B

Explanation:
JARYAH LIMITED demonstrates a solid financial foundation with strong net current assets and positive net assets, indicating a generally healthy liquidity position and equity base. However, a noticeable decline in current assets over the past year and a slight reduction in net assets suggest early signs of financial caution. The company’s micro-entity status, small share capital, and limited asset base point to a lean operation that should monitor cash flow carefully to avoid symptoms of financial distress.

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2. Key Vital Signs (Core Financial Metrics)

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	2,984	2,368	Small but consistent investment in long-term assets, indicating some capital expenditure.
Current Assets	147,954	182,246	Healthy level of liquid assets, though decreased by ~19% from prior year; watch cash levels.
Current Liabilities	9,570	13,882	Low short-term debts; reduction signals improved management of immediate obligations.
Net Current Assets	138,384	168,364	Strong working capital; however, a decrease points to potential tightening of liquidity.
Total Assets Less Liabilities	141,368	170,732	Reflects net asset value; decline indicates possible profit retention challenges or withdrawals.
Net Assets / Shareholders’ Funds	141,368	170,732	Equity base remains positive and healthy for micro business; decreased equity requires attention.

Additional operational metric:

• Average number of employees increased from 3 to 5, indicating growth or scaling of operations.

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3. Diagnosis (What the Numbers Reveal About Business Health)

• Liquidity and Working Capital: The company maintains a very healthy net current asset position (~£138k), which is akin to having a strong pulse and steady heartbeat in financial terms. This means it can comfortably cover short-term obligations without strain—a vital sign of good financial health.

• Asset Base and Equity: While the fixed assets are minimal, consistent with a micro-entity in the software and advertising sector, the company’s net assets show a mild decline (~17% drop) from 2023 to 2024. This could be symptomatic of reduced profitability or distributions to owners, which may need monitoring to prevent financial fatigue.

• Cash Flow Considerations: The 19% drop in current assets, notably cash or equivalents, may be an early symptom of cash flow tightening. Given the business operates in advertising, software development, and web portals—industries that require ongoing investment in technology and marketing—maintaining healthy cash flow is critical.

• Growth Indicators: Increasing employee headcount from 3 to 5 suggests expansion, which, while positive, may increase overhead costs and pressure on cash flow if revenue growth does not keep pace.

• Corporate Governance and Stability: The company retains a stable management team with two directors, and no indications of financial distress such as overdue filings or legal status issues. This regulatory compliance and governance stability are positive signs.

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4. Recommendations (Actions to Improve Financial Wellness)

1. Enhance Cash Flow Monitoring:
   Introduce more frequent cash flow forecasts and scenario planning to identify potential liquidity gaps early. Consider tightening credit control and optimizing receivables turnover.

2. Cost Management Focus:
   With an increased workforce and declining current assets, review operating expenses to ensure growth-related costs do not outpace revenues. Focus on cost-effective marketing and technology investments.

3. Profit Retention Strategy:
   Investigate the causes of net asset decline—whether due to dividends, drawings, or losses. Aim to retain sufficient profits to build reserves that can cushion against market fluctuations.

4. Diversify Revenue Streams:
   Given the sectors involved, explore additional digital products or services that could provide stable recurring income to reduce dependency on project-based revenues.

5. Regular Financial Health Checks:
   Adopt a quarterly financial health review, akin to regular medical check-ups, checking vital signs like liquidity ratios, profitability margins, and capital structure to ensure early detection of any distress symptoms.

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