PALM (YORKSHIRE) LIMITED
Company number 08017441 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Assessment: PALM (YORKSHIRE) LIMITED
1. Financial Health Score: A
Grade Justification: This business exhibits the financial equivalent of a peak-condition athlete — strong vital signs across all key metrics, consistent year-on-year improvement, and a robust immune system against economic shocks. Net assets have grown from £172,834 in 2019 to £1,325,785 in 2025 — a compound growth story that speaks to genuine underlying business health, not financial engineering.
2. Key Vital Signs
| Metric | 2025 | 2024 | Trend | Interpretation |
|---|---|---|---|---|
| Net Assets | £1,325,785 | £817,442 | ▲ 62.2% | Outstanding equity growth |
| Total Assets | £1,652,737 | £1,266,436 | ▲ 30.5% | Strong asset accumulation |
| Cash | £936,969 | £518,682 | ▲ 80.6% | Exceptional liquidity |
| Total Liabilities | £575,808 | £715,670 | ▼ 19.5% | Debt reduction — healthy sign |
| Net Current Assets | £1,076,929 | £550,766 | ▲ 95.5% | Near-doubling of working capital |
| Current Ratio | 2.87:1 | 1.77:1 | ▲ Improving | Well above safe threshold of 1.5:1 |
| Quick Ratio | 2.83:1 | 1.75:1 | ▲ Improving | Excellent — minimal stock dependency |
| Cash as % of Current Assets | 56.7% | 40.9% | ▲ Improving | Highly liquid balance sheet |
Longitudinal Net Asset Growth (10-Year View)
| Year | Net Assets | Year-on-Year Growth |
|---|---|---|
| 2016 | £232,799 | — |
| 2017 | £131,072 | ▼ 43.7% (dip) |
| 2018 | £126,113 | ▼ 3.8% (trough) |
| 2019 | £172,834 | ▲ 37.0% (recovery begins) |
| 2020 | £235,270 | ▲ 36.2% |
| 2021 | £362,447 | ▲ 54.1% |
| 2022 | £396,859 | ▲ 9.5% |
| 2023 | £687,314 | ▲ 73.2% |
| 2024 | £817,442 | ▲ 18.9% |
| 2025 | £1,325,785 | ▲ 62.2% |
The trajectory tells a compelling story: the business weathered a difficult period around 2017-2018, diagnosed the problem, and has been building strength ever since. Like a patient who has adopted a disciplined fitness regime, the results are now compounding impressively.
3. Diagnosis
What the Financial Data Reveals About Business Health
🟢 Robust Constitution — Profitability Engine
Retained earnings have grown from £126,111 (2018) to £1,325,783 (2025), representing cumulative profits reinvested in the business. With only £2 in share capital, virtually all equity has been generated through trading profits. This is the financial equivalent of building muscle through exercise rather than supplements — organic, sustainable growth.
🟢 Excellent Circulation — Cash Flow Health
Cash of £936,969 represents 56.7% of all current assets. The business is generating cash faster than it needs to deploy it, which is the hallmark of a healthy, well-managed operation. Think of cash as the blood supply to a business — PALM (Yorkshire) has excellent circulation with no signs of clotting or restriction.
🟢 Strengthening Immune System — Liability Reduction
Total liabilities have decreased from £715,670 to £575,808 (a 19.5% reduction) while assets grew by 30.5%. This means the business is deleveraging organically — paying down obligations from operating profits rather than refinancing or restructuring. The "debt-to-equity ratio" has shifted dramatically in the shareholders' favour.
🟡 Moderate Observation — Debtors Level
Debtors stand at £695,768 (42.1% of current assets). While this has actually decreased from £732,754 in the prior year (a positive collection signal), it remains a significant figure. In the plumbing and electrical installation trade, debtor days can be a common pressure point. Continued vigilance on credit control is advisable — like monitoring cholesterol levels, it's fine now but shouldn't be neglected.
🟢 Working Capital Cushion
Net current assets of £1,076,929 mean the business has nearly £1.1 million of headroom between short-term assets and short-term liabilities. This is the financial equivalent of having excellent lung capacity — the business can absorb shocks, fund growth initiatives, and never need to scramble for working capital.
🟢 Fixed Asset Base
Tangible fixed assets of £273,856 (slightly down from £291,676 due to depreciation) indicate the business maintains a reasonable equipment base for its trade without over-investing in capital that could become obsolete. This is a sensible, asset-light approach for an installation business.
4. Recommendations
Prescriptions for Continued Financial Wellness
1. Debtor Management — Keep the Arteries Clear - Debtors at £695,768 warrant ongoing attention. Consider implementing stricter credit terms, automated follow-ups, or offering early payment discounts (e.g., 2% for payment within 10 days). In the construction and installation trades, late payment is endemic — proactive management prevents cash flow clotting.
2. Cash Deployment Strategy — Don't Let It Sit Idle - With £936,969 in cash, the business is significantly over-capitalised for its operational needs. Consider: - Short-term deposit accounts or money market funds for better returns - Director pension contributions (tax-efficient extraction) - Strategic investment in growth — new service lines, geographic expansion, or key hires - Dividend distribution if shareholders wish to extract value
Cash earning nothing is like a healthy patient who refuses to exercise their full potential — fit, but underperforming.
3. Share Capital Formalisation - With only £2 in share capital and over £1.3 million in retained earnings, the capital structure is heavily skewed. While not problematic, it's worth discussing with your advisor whether a bonus issue of shares or formal capital reorganisation might provide greater flexibility for future profit extraction or business restructuring.
4. Succession and Governance Planning - The PSC register shows Paul Adams with significant influence and control. With three directors (including family members), formalise succession planning and key-person risk management. Consider what happens if a director becomes unable to serve — the business is healthy now, but resilience planning is preventive medicine.
5. Continue Monitoring the Growth Trajectory - The 62.2% net asset growth in 2025 is exceptional. If growth continues at this pace, the company will soon exceed the small company thresholds (turnover ≤ £10.2M, balance sheet ≤ £5.1M, ≤ 50 employees). Plan for the additional reporting and audit requirements that come with medium company status.
6. Provisions Review - The £25,000 provision (unchanged year-on-year) should be reviewed to confirm it remains appropriate. Provisions that linger unchanged may indicate an obligation that should be resolved or released.
Prognosis
The outlook for PALM (Yorkshire) Limited is excellent. The business has demonstrated a remarkable ability to grow profitability, accumulate cash, and reduce liabilities simultaneously — the financial equivalent of a triple health win. The 2017-2018 dip appears to have been a temporary illness from which the business has not only recovered but emerged stronger. With a current ratio of 2.87:1, cash representing over half of current assets, and retained earnings exceeding £1.3 million, this business has the financial fitness to weather economic cycles and fund its own growth ambitions.
The primary risk is not financial distress but complacency — ensuring that the substantial cash reserves are deployed productively rather than sitting idle, and that debtor management remains disciplined as the business scales.