Company Number: 13469494

Analysis Date: 2025-07-29 14:06 UTC

Financial Health Assessment for ROUTE YC LIMITED

---

1. Financial Health Score: B-

Explanation:
ROUTE YC LIMITED demonstrates a generally stable financial position with positive net assets and shareholders' funds. The company maintains healthy working capital, indicating liquidity to cover short-term obligations. However, there is a noticeable decline in total assets and net current assets compared to previous years, which flags some caution. Given the company is micro-sized and limited by guarantee, with minimal financial commitments and only one employee, the financial health is fairly sound but shows early signs of resource tightening or reduced operational scale.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	43,901	52,415	Slight decline; possible disposal or depreciation of long-term assets.
Current Assets	33,800	45,517	Decrease indicates reduced cash/debtors or inventory; watch liquidity.
Current Liabilities	4,910	1,439	Increase in short-term obligations; could pressure cash flow.
Net Current Assets	28,890	44,078	Healthy positive working capital but dropped significantly.
Total Assets Less CL	72,791	96,493	Overall asset base decreased; monitor asset management and investments.
Shareholders’ Funds	72,791	96,493	Equity decline mirrors asset decrease; no immediate solvency threat.
Average Number of Employees	1	1	Very small workforce; low overheads but also limited capacity.

Interpretation:
The "vital signs" resemble a patient whose blood pressure and pulse are normal but whose energy levels are declining. The company has enough liquidity to meet current obligations ("healthy cash flow") but is using up reserves or reducing assets. The increase in current liabilities compared to previous years suggests some "symptoms of financial distress" that warrant attention.

---

3. Diagnosis

ROUTE YC LIMITED is financially solvent and liquid, with positive net assets and a solid buffer of working capital. The company’s micro status and limited guarantee structure mean it operates with minimal financial complexity and risk exposure. However, the reduction in fixed and current assets alongside rising current liabilities signals a contraction or a potential decrease in operational scale or revenue inflows.

The company appears to be in a stable but cautious phase—like a patient recovering but with signs of fatigue. The increase in current liabilities without an offsetting rise in current assets could suggest delayed payments or increased short-term borrowing. The single-employee structure suggests minimal payroll burden but also limited operational bandwidth.

No audit is required under micro-entity provisions, and no financial commitments at year-end suggest the company is not over-leveraged.

---

4. Recommendations

• Improve Liquidity Management: Monitor and aim to reduce current liabilities or align them better with cash inflows to prevent liquidity strain. Consider negotiating longer payment terms with suppliers or accelerating receivables collection.

• Asset and Resource Optimization: Investigate reasons behind the drop in fixed assets and current assets. If assets are being sold to cover expenses, develop a plan to rebuild the asset base or diversify income sources.

• Financial Planning: Establish a cash flow forecast and budget to anticipate periods of stress and manage working capital proactively.

• Operational Efficiency: Given the micro scale, ensure that the limited workforce is optimally utilized and consider if strategic partnerships or outsourcing could enhance capacity without large cost increases.

• Stakeholder Communication: Keep clear and transparent communication with the controlling entity (Yorkshire Coast Bid Ltd) and directors about financial status and plans to address the decline in asset base.

• Future Growth Strategy: Explore opportunities for revenue growth or funding to replenish reserves and support sustainable operation, ensuring the company does not become overly dependent on a shrinking asset base.

---