NORTH DEVON JUNIPER LTD

Executive Summary

NORTH DEVON JUNIPER LTD is currently facing significant financial challenges, characterized by negative net assets and a critical liquidity shortfall. The company’s balance sheet shows symptoms of financial distress akin to a patient with a failing vital sign—urgent measures to improve cash flow and equity are essential to avoid insolvency. With timely intervention and financial restructuring, there remains potential for recovery and stabilization.

NORTH DEVON JUNIPER LTD - Analysis Report

Company Number: 13888042

Analysis Date: 2025-07-20 16:56 UTC

Financial Health Assessment for NORTH DEVON JUNIPER LTD (as of 31 May 2024)

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1. Financial Health Score: D

Explanation:
The company’s financial position shows signs of distress with net liabilities and negative shareholders’ funds. While it is still operational and not in liquidation, the balance sheet reveals symptoms of financial strain that require attention.

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2. Key Vital Signs (Core Financial Metrics):

Metric	Value (£)	Interpretation
Fixed Assets	343,420	The company holds significant long-term assets, typical of building project development firms.
Current Assets	140	Extremely low liquid assets/cash available to cover short-term obligations.
Current Liabilities	366,279	High short-term debts and obligations to be settled within one year.
Net Current Assets	(366,139)	Severe working capital deficiency indicating inability to meet short-term liabilities.
Shareholders Funds	(22,719)	Negative equity indicates liabilities exceed assets; company is technically insolvent.
Employee Count	1	Sole director/employee structure, consistent with micro entity size.

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3. Symptoms Analysis (What the Numbers Reveal):

• Negative Shareholders’ Funds: The company’s liabilities exceed its assets by £22,719, a clear symptom of financial distress or undercapitalisation. This situation can jeopardize the company’s solvency if not addressed.

• Severe Working Capital Deficiency: The net current liabilities of £366,139 indicate the company lacks sufficient short-term resources (cash or receivables) to cover immediate debts. This is akin to a patient with a dangerously low pulse—urgent intervention is needed to restore liquidity.

• Stable Fixed Assets: The fixed assets have increased modestly from £317,108 to £343,420, suggesting ongoing investment in property or development projects. However, these assets are illiquid and cannot be used quickly to pay off short-term debts.

• Minimal Current Assets: Current assets have dropped dramatically from £8,053 to £140, highlighting a near absence of cash or easily convertible assets. This is an alarming sign of cash flow problems.

• Micro Entity Status: As a micro company with only one employee (the director), operational complexity is low, but financial oversight and resource limitations may contribute to current issues.

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4. Diagnosis (Overall Financial Condition):

NORTH DEVON JUNIPER LTD is currently in a precarious financial state. The core problem is a working capital crisis: the company does not have enough current assets to meet its current liabilities, leading to negative net assets and shareholder deficit. This situation implies the company is effectively insolvent on a balance sheet basis.

The investment in fixed assets shows ongoing development activity, but these assets are not helping alleviate liquidity constraints. Without sufficient cash or receivables, the company risks defaulting on short-term obligations.

The single director is the sole controlling party, which simplifies decision-making but also concentrates risk.

In medical terms, the company is in a “critical condition” due to liquidity failure and balance sheet insolvency, though not yet in formal “cardiac arrest” (liquidation). Immediate interventions are needed to stabilize.

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5. Prognosis (Future Outlook):

If no corrective action is taken, the company could face increasing financial distress, possibly leading to insolvency proceedings. However, if the company can improve cash flow, restructure debts, or inject fresh capital, it may recover and strengthen its financial position.

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6. Recommendations (Specific Actions for Improvement):

• Improve Liquidity: Seek ways to increase current assets, such as accelerating debtor collections, reducing inventory, or injecting cash from shareholders or external investors.

• Debt Restructuring: Negotiate longer payment terms or refinancing options with creditors to alleviate short-term pressure.

• Capital Injection: The sole shareholder/director could consider injecting equity to restore positive net assets and improve solvency.

• Cost Management: Monitor and reduce operational expenses, especially since the company currently operates with minimal staff.

• Financial Monitoring: Establish regular cash flow forecasting and financial reporting to detect and address liquidity issues early.

• Professional Advice: Engage with a financial advisor or insolvency practitioner proactively to explore restructuring options before formal distress.

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