Company Number: 12416881

Analysis Date: 2025-07-29 20:18 UTC

Financial Health Assessment: YBS PROPERTIES LTD (as of 31 January 2024)

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1. Financial Health Score: C

Explanation:
YBS PROPERTIES LTD shows a mixed financial condition. The company holds substantial fixed assets (£705,000), reflecting its real estate focus, but its net assets remain low (£22,810). The presence of high long-term liabilities (£468,559) and current liabilities compared to relatively small current assets signal possible liquidity challenges. While the company is solvent and growing equity, the financial "pulse" is weak due to constrained working capital and modest equity cushion.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	705,000	Strong asset base, typical for property company
Current Assets	8,766	Very limited liquid assets (cash/debtors)
Current Liabilities	468,559	High short-term obligations needing attention
Net Current Assets	(213,631)	Negative working capital, "symptom of cash flow strain"
Total Assets less Current Liabilities	491,369	Reflects asset base after short-term debts
Long-Term Liabilities	468,559	Significant debt likely secured against assets
Net Assets (Equity)	22,810	Low equity relative to liabilities, "thin financial margin"
Share Capital	100	Minimal capital invested by shareholders

Interpretation:

• Fixed Assets indicate ownership/control of valuable real estate, a strong foundation.
• Current Assets are low, indicating minimal cash or receivables to meet immediate expenses.
• Current Liabilities are very high compared to current assets, causing negative net current assets (working capital deficit), a warning sign of liquidity stress or reliance on debt refinancing.
• Long-Term Liabilities nearly match total assets less current liabilities, indicating high gearing/leverage.
• Net Assets are positive but low, showing limited buffer to absorb shocks or losses.

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3. Diagnosis: Financial Condition Overview

YBS PROPERTIES LTD is like a patient with a solid skeleton but weak circulation. The company owns valuable fixed assets but suffers from poor liquidity, reflected in negative working capital. This "symptom" suggests the company might struggle to cover short-term obligations without additional cash inflows or refinancing. The low equity base relative to liabilities indicates financial leverage is high, increasing financial risk if asset values fall or income streams weaken.

The steady increase in net assets from £11,145 to £22,810 year-on-year shows improvement but remains fragile. The company’s survival depends heavily on managing liabilities and ensuring cash flow remains positive. The micro-entity status limits disclosure detail, so some financial nuances may be obscured.

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4. Recommendations: Steps to Improve Financial Wellness

1. Enhance Liquidity Management:

   • Build cash reserves by improving rent collection cycles or reducing operating expenses.
   • Consider refinancing short-term liabilities to longer-term debt to ease immediate cash flow pressure.

2. Strengthen Equity Base:

   • Inject additional capital or retain earnings to increase shareholders’ funds, providing a stronger financial cushion.

3. Asset Utilization Review:

   • Evaluate the property portfolio for potential sales or leasing improvements to generate cash flow.
   • Avoid over-investing in fixed assets without matching liquidity.

4. Monitor Debt Levels:

   • Regularly assess debt servicing capacity to avoid over-leverage.
   • Negotiate better terms with creditors where possible.

5. Financial Forecasting and Reporting:

   • Develop cash flow forecasts to anticipate liquidity needs and avoid surprises.
   • Even as a micro-entity, maintain internal financial tracking beyond statutory requirements.

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