CY EXECUTIVE RESOURCING LIMITED

Financial Health Score: A-

CY Executive Resourcing Limited presents as a robust and mature business with a strong history of retaining earnings and a very healthy liquidity position. The score is kept from an A+ due to a slight contraction in net assets in the latest year and a naturally thin "blood flow" (cash reserves) relative to its total size, which is common but requires careful management.

Key Vital Signs

1. Net Assets (The Business Skeleton) - £1,153,727 * Reading: Healthy and strong. The company has steadily built up its equity from £629k in 2016 to over £1.15M in 2025. This represents a solid structural foundation, meaning the business has significant retained earnings to fall back on in tough times.

2. Current Ratio (Blood Pressure) - 4.75x * Reading: Excellent. With current assets of £1.46M against current liabilities of £307k, the company has nearly five times more short-term assets than short-term debts. There is no risk of financial hypoxia (insolvency) in the near term.

3. Cash Position (Circulation) - £47,662 * Reading: Adequate but thin. While cash has doubled from the previous year (£23.9k), it represents a very small proportion of overall current assets. The company's "blood flow" is heavily reliant on the collection of outstanding invoices (debtors of £1.41M).

4. Long-Term Debt (Cholesterol) - £0 * Reading: Exceptionally clear. The company has entirely cleared its long-term creditors, which stood at £52k in 2024. Furthermore, secured bank loans have been reduced from £138k to a negligible £3.9k. The business has successfully flushed out its long-term financial blockages.

5. Profitability Indicator (Nutritional Intake) - Contraction * Reading: Needs monitoring. While we cannot see the exact Profit & Loss statement, retained earnings dropped from £1,234,839 to £1,152,727 (a decrease of £82,112). This suggests the business either sustained a loss or paid out a significant dividend to its shareholders.

Diagnosis

The patient is in fundamentally good health, displaying the robust constitution of a well-established enterprise that has been operating for over 15 years. The most encouraging symptom is the dramatic reduction in long-term debt and secured loans; the business has effectively cured itself of high-interest obligations, leaving its assets largely unencumbered.

However, there are two symptoms that require observation. First, the drop in net assets during the 2025 financial year breaks a steady multi-year trend of growth. If this was a planned dividend extraction by the shareholders (Vantis Group Ltd and Mrs. Cynthia Laura Parker), it is a healthy expression of business success. If it represents an operating loss, it is a mild fever that needs to be watched in the next reporting cycle.

Second, the company's vital signs are heavily skewed towards "debtors" (money owed by clients). In the recruitment and consultancy industry, this is normal—clients often pay on 30-to-60-day terms. However, having £1.41M tied up in debtors means the company's circulation is sluggish. If clients delay payments, the business could experience a cash flow cramp despite being fundamentally profitable.

Recommendations

1. Accelerate Cash Circulation: Implement stricter credit control procedures to ensure outstanding debtor invoices are converted to cash more rapidly. Consider offering early-payment discounts to clients to improve the raw cash position, ensuring the "blood flow" matches the "body mass" of the business.
2. Monitor the "Fever": Investigate the root cause of the £82k drop in retained earnings. If it was a one-off dividend payout, no further action is needed. If it was a trading loss, management should review overheads and revenue streams to ensure this does not become a chronic condition.
3. Maintain Low Cholesterol: Having cleared the majority of its bank debt, the company should be cautious about taking on new long-term liabilities unless they are for clearly profitable expansion. The current debt-free status is a major competitive advantage.
4. Cash Buffering: Aim to build cash reserves to cover at least 1-2 months of operating expenses (typically around £100k-£150k for a firm of this size) to inoculate the business against any sudden shocks in client payment behaviors.