SJCM LTD

Executive Summary

SJCM LTD exhibits a strong financial position for a micro-entity with growing liquidity and equity, no operational liabilities distress, and sound management control. While currently stable and healthy, the company should prepare for growth by expanding operational capacity and enhancing financial governance. Overall, the outlook is positive if prudent financial discipline and strategic planning continue.

SJCM LTD - Analysis Report

Company Number: 13972415

Analysis Date: 2025-07-20 11:14 UTC

Financial Health Assessment Report for SJCM LTD

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1. Financial Health Score: B

Explanation:
SJCM LTD demonstrates a sound financial footing characterized by healthy working capital growth and positive shareholder equity. Despite being a micro-entity with limited operations and no employees, the company’s financial statements indicate strong liquidity and prudent capital management. However, the small scale and lack of operational data temper the rating from an A to a B, reflecting room for growth and operational maturity.

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2. Key Vital Signs

Metric	2024	Interpretation
Current Assets	£31,018	Increasing, showing improved cash or receivables availability which supports operational liquidity.
Current Liabilities	£5,751	Stable, manageable short-term obligations relative to assets.
Net Current Assets (Working Capital)	£25,267	Healthy positive working capital, indicating the company can comfortably cover short-term debts—a sign of financial wellness.
Shareholders’ Funds (Equity)	£25,267	Growing equity base, reflecting retained earnings or capital injections and a solid net asset position.
Share Capital	£102	Minimal share capital, typical for a micro company but highlights reliance on retained earnings for equity growth.
Employee Count	Nil	No employees; low operational complexity but potential constraints on scaling without hiring.

Vital Sign Interpretation:

• Healthy cash flow proxy: The rise in current assets without a corresponding rise in liabilities suggests good cash or near-cash resources, a vital sign of liquidity and operational readiness.
• Stable liabilities: Current liabilities have decreased slightly, reducing pressure on immediate payments.
• Growing net assets: The steady increase in net current assets and shareholders’ funds is analogous to a strengthening heart muscle—signaling resilience and capacity to absorb operational shocks.
• No operational staff: While not a weakness per se, it limits operational capacity and growth potential, akin to a patient with strong vital signs but low physical activity.

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3. Diagnosis

SJCM LTD is financially stable with no evident symptoms of distress such as liquidity shortages, excessive liabilities, or declining equity. The company has shown consistent improvement in net current assets and shareholders’ funds since incorporation, indicating profitable or capital-positive activity. The absence of employees suggests a lean operation, likely owner-managed consultancy services, which aligns with the SIC code for management consultancy.

The company's micro-entity status and exemption from audit reflect its simplicity and low complexity, but also mean that financial disclosures are minimal. The director’s dual role as sole shareholder and manager indicates centralized control, which can be efficient but also risky if over-reliant on one individual.

There are no overdue filings, no signs of insolvency or distress, and the company is in active status, all positive indicators for financial health.

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4. Recommendations

• Maintain strong liquidity: Continue prudent management of current assets and liabilities to preserve the healthy working capital position.
• Plan for scaling: Consider strategic hiring or subcontracting to support growth beyond owner capacity, addressing current operational limits.
• Enhance financial reporting: As the company grows, moving beyond micro-entity provisions and adopting full accounts and audit may improve stakeholder confidence.
• Diversify capital structure: Evaluate opportunities to increase share capital or external funding to fuel expansion and reduce reliance on retained earnings alone.
• Risk management: Implement processes to mitigate risks associated with single-person control, including succession planning and governance structures.
• Monitor industry trends: Stay alert to changes in management consultancy demand and economic conditions that could impact cash flows or client base.

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