PJ CONSTRUCT LIMITED

Executive Summary

PJ CONSTRUCT LIMITED demonstrates a sound financial base with positive net assets and working capital, reflecting a healthy liquidity position for its first year. However, as a very young micro-entity with no employees and limited operational data, it remains in an early developmental stage. Continued focus on growing revenue, managing cash flow, and maintaining compliance will be critical to ensure sustained financial wellness.

PJ CONSTRUCT LIMITED - Analysis Report

Company Number: 15111837

Analysis Date: 2025-07-20 11:23 UTC

Financial Health Assessment for PJ CONSTRUCT LIMITED

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1. Financial Health Score: B

Explanation:
PJ CONSTRUCT LIMITED shows signs of a stable financial foundation as a newly incorporated micro-entity. The company’s net current assets are positive and there are no overdue filings, indicating good compliance and liquidity management. However, given the company is very young (just over one year old) with limited operational history and no employees, the financial data is insufficient to assess profitability or cash flow trends. Thus, a grade B reflects a generally healthy but early-stage financial position with room to monitor as the business matures.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	50,316	Healthy level of short-term assets (cash, receivables, stock) for a micro company.
Current Liabilities	20,582	Short-term obligations; manageable relative to assets.
Net Current Assets	29,734	Positive working capital indicates ability to cover short-term debts — a "healthy cash flow" symptom.
Net Assets (Equity)	29,734	Shareholder funds fully cover liabilities, indicating good solvency.
Employees	0	No employees suggest minimal operational expenses or early-stage development.
Account Filing Status	Up to date	No overdue filings; company compliant with statutory requirements.
Company Age	~1 year	Early stage; limited financial history to assess long-term stability.

Interpretation:
The positive net current assets and net assets reflect a solid liquidity position with no immediate financial distress. The absence of employees suggests a lean operation or perhaps subcontracted work, typical in early construction business phases. Compliance with filings indicates sound governance.

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3. Diagnosis

PJ CONSTRUCT LIMITED is in the "early recovery room" phase typical of new businesses. The positive working capital and net assets denote a stable internal environment with no signs of financial distress ("no symptoms of acute financial illness"). However, the lack of employees and limited operational data mean the company has yet to demonstrate sustainable revenue generation or profitability.

The company’s SIC codes (general cleaning and construction of domestic and commercial buildings) show a diversified service offer within the construction sector, which can provide multiple revenue streams but also requires careful cash flow management.

The recent change in directors (one resignation and one new appointment in April 2025) is a routine governance event but worth monitoring for any impact on strategic direction.

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4. Recommendations

• Monitor Cash Flow: As the company scales operations beyond micro-entity status, ensure detailed cash flow forecasting to avoid liquidity crunches—maintain "healthy cash flow" akin to good blood circulation in a patient.

• Build Revenue History: Focus on growing contract wins and invoicing to accumulate a track record of profitability—this will serve as the "strengthening of the heart muscle" for financial health.

• Operational Planning: Consider hiring or subcontracting strategically to build capacity while managing costs, avoiding "overexertion" in early days.

• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid regulatory penalties ("avoid infection").

• Risk Management: Develop basic financial controls and budgeting to detect early "symptoms" of financial stress as business complexity increases.

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