PAUL JOSEPH STUNTS LTD

Executive Summary

Paul Joseph Stunts Ltd maintains a healthy liquidity position with positive working capital and adequate cash reserves, reflecting sound financial "vital signs." However, a slight decline in equity and rising director liabilities suggest the need for careful cash flow and internal financing management. With targeted actions to address these mild symptoms, the company is poised to sustain financial wellness and operational stability.

PAUL JOSEPH STUNTS LTD - Analysis Report

Company Number: 14368595

Analysis Date: 2025-07-29 13:45 UTC

Financial Health Assessment Report for PAUL JOSEPH STUNTS LTD

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1. Financial Health Score: B

Explanation:
The company shows a generally stable financial position with positive net current assets and shareholders’ funds. However, a slight decline in net assets and a high level of directors’ current account liabilities signal caution. Overall, the company is financially healthy but with some mild symptoms that require attention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	80,539	83,151	Adequate short-term assets, mostly cash – indicates good liquidity but slightly reduced.
Cash at Bank	80,266	83,151	Healthy cash reserves, essential for meeting immediate obligations.
Debtors	273	0	Minimal receivables, reflecting either quick collections or low credit sales.
Current Liabilities	46,386	42,442	Payables and short-term debts increasing moderately – watch for rising obligations.
Net Current Assets (Working Capital)	34,153	40,709	Positive working capital, but decreased – potential early sign of tightening liquidity.
Shareholders’ Funds (Equity)	35,924	41,350	Equity base reduced slightly – suggests retained earnings decreased or distributions made.
Directors’ Current Account Liability	34,815	19,258	High and increasing liability owed to director – possibly loan or unpaid drawings.
Fixed Assets (Net Book Value)	1,771	641	Investment in equipment rising, indicating business asset growth.

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3. Diagnosis

• Liquidity ("Pulse Check"): The company's cash on hand is robust, akin to a healthy pulse, indicating the company can meet immediate expenses. However, a slight decrease in net current assets and increased current liabilities suggest some tightening of cash flow. The company is not under distress but should monitor operating cash flow carefully.

• Solvency ("Bone Structure"): Shareholders’ funds remain positive and relatively strong for a young company, reflecting a stable equity base. The slight decrease from prior year is not alarming but indicates the business might have incurred losses or taken distributions. The company’s low fixed asset base is typical for its industry and size, but growing, showing investment in operational capability.

• Financial "Symptoms":

  • The large and rising directors’ current account liability is akin to a symptom of internal financing or cash flow management strategy. While common in owner-managed businesses, it is important to ensure this does not mask liquidity issues.
  • Minimal trade debtors indicate tight credit control or low credit sales, which is positive for cash flow but could limit sales growth.

• Operational Overview: The company operates in support activities to performing arts, a niche sector that may have variable cash flow and seasonal revenues. The small employee base (average 1) means financials are closely tied to the director’s management and personal financing.

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4. Recommendations

• Manage Director's Account Liability: Consider formalising repayment plans or converting part of this liability into equity if feasible. This will strengthen the balance sheet and reduce short-term liabilities.

• Enhance Working Capital Management: Monitor and control current liabilities carefully to prevent cash flow strain. Explore options to negotiate longer payment terms with creditors if necessary.

• Plan for Profitability Improvement: Investigate the causes of reduced retained earnings and implement strategies to boost profitability, such as cost control or revenue diversification.

• Maintain Adequate Cash Reserves: Continue to preserve healthy cash levels to ensure operational flexibility, especially given the company's niche market exposure.

• Regular Financial Review: As the company grows, periodic financial health checks will help catch early symptoms of distress, allowing for timely intervention.

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Summary

Paul Joseph Stunts Ltd exhibits generally good financial health with strong liquidity and positive equity. The company’s financial “vital signs” show a stable but slightly tightening position, with an area of concern being the growing director’s loan account. With prudent working capital management and focus on profitability, the company is well-positioned for sustainable operations in its specialised sector.

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