PJ NETCOM LTD

Executive Summary

PJ NETCOM LTD is a start-up micro-entity showing stable but very modest financial strength with positive net assets and no current liabilities, indicating a healthy short-term liquidity position. The company’s financial health is fragile due to limited scale and reliance on an unsecured director loan, highlighting the need for growth and stronger financial buffers. Focused efforts on cash flow management, asset acquisition, and revenue growth will be vital for a more robust financial outlook.

PJ NETCOM LTD - Analysis Report

Company Number: 15054783

Analysis Date: 2025-07-20 15:57 UTC

Financial Health Assessment of PJ NETCOM LTD as at 31 August 2024

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1. Financial Health Score: C

Explanation:
PJ NETCOM LTD is a newly incorporated micro-entity in the construction installation sector, showing basic positive net assets but minimal operational scale. The financial "vital signs" indicate no immediate distress, but the company's financial profile is very thin, reflecting early-stage business with limited financial depth and activity. This results in an average grade, signalling a stable but fragile situation requiring growth and development.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Age	1 year	Start-up phase; financial history limited
Account Category	Micro	Minimal reporting requirements; small scale
Fixed Assets	£0	No long-term investments or property; very lean asset base
Current Assets	£1,083	Small cash or receivables; implies limited liquidity
Current Liabilities	£0	No short-term debts; positive sign of no immediate external payables
Net Current Assets	£1,083	Positive working capital; a healthy short-term liquidity "pulse"
Net Assets	£1,085	Equity position is positive but very modest
Shareholders Funds	£1,085	Entirely equity-financed; no external debt
Director Loan Balance	£1,024.47	Unsecured director loan outstanding; mild symptom of external borrowing
Employees	1	Very small workforce; early operation stage

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3. Diagnosis

PJ NETCOM LTD exhibits the financial characteristics typical of a nascent micro business. The company shows stable but minimal assets, no fixed assets to support operations long-term, and no current liabilities, which suggests a clean short-term balance sheet with no immediate financial obligations. The positive net current assets show a "healthy cash flow pulse," meaning the company can meet its short-term obligations without stress.

However, the presence of an unsecured director loan of around £1,000 indicates the company has relied on internal funding to support cash flow, a common "symptom" in start-ups where external financing is limited or unavailable. The loan is interest-bearing but has no fixed repayment date, which mitigates immediate liquidity risk but suggests dependency on the directors for funding.

The company operates with only one employee, which limits operational capacity but is consistent with the start-up stage. The micro-entity status means the company is not yet generating significant turnover or profits, so its financial health is best viewed as "stable but fragile" – healthy enough to continue operating but with little cushion against unexpected shocks or downturns.

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4. Recommendations

To improve the financial wellness and build resilience, PJ NETCOM LTD should consider the following actions:

• Build Financial Buffers:
  Gradually increase cash reserves and working capital to buffer against unforeseen expenses or delays in receivables. Healthy cash flow management is critical.

• Asset Investment Strategy:
  Plan for acquisition of fixed assets or equipment necessary for operational efficiency and future growth, reducing reliance on external loans.

• Formalize Director Loans:
  Consider formal agreements for director loans including clear repayment terms to avoid liquidity uncertainties or governance issues.

• Revenue Growth Focus:
  Develop and execute strategies to increase sales and diversify customer base to move beyond minimal scale and increase net assets and profitability.

• Cost Control:
  Maintain tight control of expenses, especially given the small scale; avoid unnecessary overheads while scaling.

• Financial Reporting and Monitoring:
  Continue rigorous compliance with filing deadlines and enhance internal financial monitoring to detect early signs of distress or opportunity.

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