REECE CYCLES LIMITED
Accounts Analysis
The following analysis is opinion only and should not be interpreted as financial advice.
The analysis is based on the following accounts:
Annual Accounts dated 30 June 2022Analysis of Reece Cycles Limited’s Financial Statements for the Year Ended 30 June 2022:
1. Financial Position:
- Fixed assets: The company does not have any intangible assets. Tangible assets decreased from £35,802 in 2021 to £20,989 in 2022.
- Current assets: Stocks increased from £1,002,292 in 2021 to £1,745,990 in 2022. Debtors decreased from £511,449 in 2021 to £225,570 in 2022. Cash at bank and in hand decreased significantly from £900,787 in 2021 to £138,627 in 2022.
- Creditors: Amounts falling due within one year decreased from £470,927 in 2021 to £340,517 in 2022.
- Net current assets: Decreased from £1,943,601 in 2021 to £1,769,670 in 2022.
- Total assets less current liabilities: Decreased from £1,979,403 in 2021 to £1,790,659 in 2022.
- Shareholders' funds: Decreased from £1,979,403 in 2021 to £1,790,659 in 2022.
2. Profitability:
- The financial statements do not provide detailed information on the company's profitability. The income statement has not been delivered.
3. Solvency:
- The company appears to have sufficient current assets (stocks, debtors, and cash) to cover its current liabilities (creditors falling due within one year). However, the decrease in cash at bank and in hand raises concerns about the company's liquidity.
- The net current assets decreased from the previous year, indicating potential liquidity challenges.
- The company's total assets exceed its total liabilities, which suggests solvency.
4. Accounting Policies:
- The financial statements have been prepared in accordance with the Financial Reporting Standard 102 applicable in the UK and Republic of Ireland.
- The company uses the historical cost convention to record its fixed assets and values stocks at the lower of cost and net realizable value, with provisions for slow moving and obsolete items.
- The company follows a straight-line method for depreciation of its fixed assets.
- The financial statements include significant judgments and estimates made by the directors based on historical experience and other factors.
5. Related Party Disclosures:
- The financial statements do not provide detailed information about related party transactions. The ultimate controlling party is W. J. Yeh, and the company owes £200,000 to Y2K Holdings Limited, its parent company as of 30 June 2022.
Overall, the company's financial position appears to have weakened compared to the previous year. The decrease in tangible assets, cash at bank and in hand, and net current assets raises concerns about its liquidity. The company's solvency, however, is supported by total assets exceeding total liabilities. It is recommended that further analysis of profitability and cash flow be conducted to assess the company's overall financial health.
1. Financial Position:
- Fixed assets: The company does not have any intangible assets. Tangible assets decreased from £35,802 in 2021 to £20,989 in 2022.
- Current assets: Stocks increased from £1,002,292 in 2021 to £1,745,990 in 2022. Debtors decreased from £511,449 in 2021 to £225,570 in 2022. Cash at bank and in hand decreased significantly from £900,787 in 2021 to £138,627 in 2022.
- Creditors: Amounts falling due within one year decreased from £470,927 in 2021 to £340,517 in 2022.
- Net current assets: Decreased from £1,943,601 in 2021 to £1,769,670 in 2022.
- Total assets less current liabilities: Decreased from £1,979,403 in 2021 to £1,790,659 in 2022.
- Shareholders' funds: Decreased from £1,979,403 in 2021 to £1,790,659 in 2022.
2. Profitability:
- The financial statements do not provide detailed information on the company's profitability. The income statement has not been delivered.
3. Solvency:
- The company appears to have sufficient current assets (stocks, debtors, and cash) to cover its current liabilities (creditors falling due within one year). However, the decrease in cash at bank and in hand raises concerns about the company's liquidity.
- The net current assets decreased from the previous year, indicating potential liquidity challenges.
- The company's total assets exceed its total liabilities, which suggests solvency.
4. Accounting Policies:
- The financial statements have been prepared in accordance with the Financial Reporting Standard 102 applicable in the UK and Republic of Ireland.
- The company uses the historical cost convention to record its fixed assets and values stocks at the lower of cost and net realizable value, with provisions for slow moving and obsolete items.
- The company follows a straight-line method for depreciation of its fixed assets.
- The financial statements include significant judgments and estimates made by the directors based on historical experience and other factors.
5. Related Party Disclosures:
- The financial statements do not provide detailed information about related party transactions. The ultimate controlling party is W. J. Yeh, and the company owes £200,000 to Y2K Holdings Limited, its parent company as of 30 June 2022.
Overall, the company's financial position appears to have weakened compared to the previous year. The decrease in tangible assets, cash at bank and in hand, and net current assets raises concerns about its liquidity. The company's solvency, however, is supported by total assets exceeding total liabilities. It is recommended that further analysis of profitability and cash flow be conducted to assess the company's overall financial health.
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