WAKELEY J&G LTD

Executive Summary

WAKELEY J&G LTD shows a solid liquidity position with healthy cash reserves and positive net current assets, reflecting early signs of financial strength. However, the company carries relatively high short-term liabilities and a concentrated debtor risk, indicating areas requiring cautious management. With prudent working capital controls and strategic financial planning, the company is well-placed to build on its current financial stability and support sustainable growth.

WAKELEY J&G LTD - Analysis Report

Company Number: 14375434

Analysis Date: 2025-07-29 13:34 UTC

Financial Health Assessment of WAKELEY J&G LTD
(as of 31 March 2024)

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1. Financial Health Score: B

Explanation:
WAKELEY J&G LTD demonstrates a generally sound financial position for a young private limited company in the real estate sector. The company shows positive net current assets and shareholders’ funds growth, indicating improving financial stability. However, modest equity levels and reliance on a single significant debtor and creditor base suggest some vulnerability, warranting a cautious "B" grade. This reflects a company with healthy financial vital signs but with early-stage business risks and limited financial track record.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Share Capital	£21.00	Nominal initial investment, typical for a small private company.
Fixed Asset Investments	£21,689	Investment in group undertakings; a sign of strategic long-term asset growth.
Current Assets	£723,449	Strong liquidity base, predominantly cash (£623,449) plus £100,000 debtors.
Current Liabilities	£646,949	Substantial short-term obligations, mostly “other creditors” (£642,751).
Net Current Assets	£76,500	Positive working capital indicates the company can cover short-term debts comfortably.
Shareholders’ Funds	£98,189	Equity has increased significantly from prior year (£66), signaling retained earnings/profits.
Cash Position	£623,449	Healthy cash reserves are a vital sign of liquidity and operational stability.
Debtors	£100,000	Concentrated receivables represent a potential risk if collection delays occur.
Creditors	£646,949	High creditors compared to assets suggest careful management of payables is essential.
Company Age	~2 years	Very young company; limited historical data increases uncertainty in trend analysis.

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3. Diagnosis

WAKELEY J&G LTD’s financials reveal a company in the early growth phase with a relatively healthy "pulse." The company boasts a strong cash flow position, which acts as the "heartbeat" sustaining operations and providing a buffer against short-term financial shocks. The positive net current assets and equity growth suggest profitability or capital injections, meaning the company is building its financial "muscle."

However, the company’s balance sheet shows a high level of current liabilities relative to assets, indicating a "symptom of stress" that should be monitored closely. The large creditor balance may reflect significant supplier or financing obligations that could strain liquidity if not managed prudently. The presence of a sizable debtor balance concentrated in amounts owed by group undertakings suggests potential dependency risks or intercompany financing structures that must be carefully overseen.

The company’s investment in group undertakings (£21,689) indicates strategic expansion or asset acquisition, which could lead to future revenue streams if managed well. The limited number of employees (1) reflects a lean operational model, typical for property investment or holding companies, but may also imply operational risks if key personnel are unavailable.

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4. Recommendations

• Strengthen Working Capital Management:
  Although net current assets are positive, the company should aim to reduce current liabilities or increase short-term assets to build a more robust liquidity cushion against unexpected obligations. Tighten control over payables and explore refinancing options if creditor terms are short.

• Diversify Debtor Base:
  The £100,000 owed by group undertakings concentrates credit risk. Implement formal intercompany agreements and monitor receivables closely to prevent liquidity bottlenecks.

• Monitor Cash Flow Regularly:
  Maintain the strong cash "heartbeat" by forecasting cash flows monthly and ensuring sufficient reserves for operational needs and contingencies.

• Develop Profit and Loss Transparency:
  As the director has elected not to include a profit and loss account, consider preparing internal management accounts to track profitability and support strategic decision-making.

• Plan for Growth and Capital Needs:
  Given the company's young age and modest equity, consider strategic plans for capital injection or reinvestment of profits to support growth and mitigate financial strain.

• Maintain Compliance and Governance:
  Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.

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