SJ ACCESS SOLUTIONS LTD

Executive Summary

SJ Access Solutions Ltd shows a generally healthy financial condition with strong liquidity, positive working capital, and solid equity after its first year. The company’s balance sheet indicates good operational readiness and no immediate financial distress. Continued focus on cash flow management and profit monitoring will be key to sustaining and improving financial wellness as the business develops.

SJ ACCESS SOLUTIONS LTD - Analysis Report

Company Number: 15556268

Analysis Date: 2025-07-29 12:59 UTC

Financial Health Assessment of SJ Access Solutions Ltd (as of 31 March 2025)

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1. Financial Health Score: B

Explanation:
SJ Access Solutions Ltd, a newly incorporated scaffold erection company, demonstrates a solid financial footing after its first full accounting period. The company shows strong net assets relative to liabilities, positive working capital, and shareholder equity. However, as a startup entity, the absence of profit and loss detail and limited operational history temper a top-tier rating. Thus, a "B" grade reflects generally healthy financial "vital signs" with room to build resilience and operational track record.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£16,000	Company has invested in tangible assets (motor vehicles), signaling readiness for operational activity.
Current Assets	£23,472	Adequate short-term assets including cash and debtors to cover immediate obligations.
Cash in Hand	£5,694	Healthy cash reserve supports day-to-day liquidity needs.
Debtors	£17,778	Indicates sales made on credit; monitoring collection efficiency is important to avoid cash flow strain.
Current Liabilities	£6,814	Current obligations are modest and manageable relative to current assets.
Net Current Assets (Working Capital)	£16,658	Positive working capital points to a "healthy cash flow" status, essential to fund operations without liquidity risk.
Net Assets / Shareholders’ Funds	£32,658	Solid equity base; shareholders have contributed capital and retained earnings (or accumulated profits).
Share Capital	£100	Minimal share capital, typical for a startup private limited company.
Company Age	1 year	Early-stage company with limited financial history; future monitoring needed.

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3. Diagnosis

• Liquidity and Solvency: The company exhibits strong liquidity with current assets nearly 3.5 times current liabilities and positive working capital of £16,658. This indicates no immediate "symptoms of distress" in meeting short-term debts.

• Asset Base: Fixed assets primarily in motor vehicles (£16,000 net book value) support operational capability in scaffold erection, reflecting investment in essential equipment.

• Capital Structure: Shareholders’ funds of £32,658 provide a healthy equity buffer. Retained profits or capital contributions form the bulk of equity, demonstrating initial financial support.

• Revenue and Profitability: Although turnover and profit figures are not disclosed, the balance sheet strength suggests initial business activity with effective cost control. The director’s note indicates exemption from audit due to small company status.

• Operational Outlook: The company’s business is in a specialized construction niche (SIC 43991 - Scaffold erection), an industry sensitive to economic cycles and construction sector dynamics. Early-stage companies may face challenges scaling operations and managing receivables.

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4. Recommendations

• Enhance Cash Flow Monitoring:
  Maintain rigorous credit control over trade and other debtors (£17,778) to ensure timely collections and avoid liquidity crunches.

• Build Profit and Loss Reporting:
  Although exempt from audit, developing internal profit and loss tracking will provide insights into operational efficiency and profitability trends.

• Plan for Asset Depreciation and Replacement:
  Motor vehicles depreciate annually (20% reducing balance), requiring cash flow planning for future asset renewals.

• Consider Capital Injection or Financing:
  As the company grows, evaluate options for additional equity or debt financing to support expansion, especially if working capital needs increase.

• Regular Financial Review:
  Given the company’s infancy, implement periodic financial health checkups akin to medical follow-ups to detect early symptoms of financial stress.

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