YM FACILITIES MANAGEMENT LTD

Executive Summary

YM FACILITIES MANAGEMENT LTD is showing signs of financial recovery with improved liquidity and working capital but remains burdened by accumulated losses reflected in its negative net assets. Immediate focus on capital strengthening and cash flow management is critical to stabilise the business and support sustainable profitability. With timely and targeted actions, the company can improve its financial health and resilience.

YM FACILITIES MANAGEMENT LTD - Analysis Report

Company Number: 13581718

Analysis Date: 2025-07-29 20:16 UTC

Financial Health Assessment Report for YM FACILITIES MANAGEMENT LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of financial stress, reflected in persistent negative net assets (shareholders’ deficit) over multiple years. While there is a marginal improvement in working capital in the latest year, the overall equity position remains negative, indicating financial instability akin to a patient showing some response to treatment but still critically unwell.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	4,719	219	Significant increase—improved liquidity position.
Current Liabilities	4,263	4,263	Stable short-term obligations.
Net Current Assets	456	-4,044	Shift from negative to positive—improved working capital.
Net Assets (Shareholders' Funds)	-423	-4,924	Still negative but improving—sign of accumulated losses.
Employee Count	2	-	Very small workforce consistent with micro entity status.

• Current Ratio (Current Assets / Current Liabilities): ~1.11 in 2024 (healthy threshold >1)
• Net Assets: Negative but improving, indicating ongoing losses but some recovery.
• Accruals & Deferred Income: Stable at £880, indicating some prepayments or income received in advance.

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3. Diagnosis

YM FACILITIES MANAGEMENT LTD is in a delicate financial condition, exhibiting "symptoms of distress" with cumulative losses reflected in negative net assets for consecutive years since incorporation in 2021. The company’s working capital position, however, has recently turned positive, which is a promising "vital sign" suggesting that short-term liquidity has improved, potentially due to better cash management or increased current assets.

Despite this, the company remains in a vulnerable state due to its accumulated deficit (shareholders’ funds negative by £423). The balance sheet "patient" is showing signs of gradual recovery but is not yet out of danger. The micro entity status and small scale of operations (2 employees) imply limited financial buffers and dependency on steady cash flow. The absence of audit and reliance on micro-entity accounting standards are consistent with the company's small size but reduce external financial scrutiny.

The industry mix (property management, security, temporary staffing, and consultancy) is diverse but competitive and capital-light, which demands efficient working capital and careful expense control to maintain a "healthy cash flow."

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4. Recommendations

To improve financial wellness and move towards a stronger "financial heart rate," the company should consider:

1. Strengthen Equity Base:

   • Seek additional capital injections from shareholders or external investors to reduce negative equity.
   • Alternatively, a formal restructuring plan to address accumulated losses.

2. Enhance Cash Flow Management:

   • Accelerate debtor collections and review payment terms with creditors to stabilize working capital further.
   • Monitor and control operating expenses tightly to avoid cash shortages.

3. Profitability Focus:

   • Review pricing strategies and cost structures across the diverse service offerings to ensure each line contributes positively to margins.
   • Explore efficiencies or synergies between services to improve overall profitability.

4. Financial Reporting & Controls:

   • Even as a micro entity, implement robust internal controls and financial monitoring to detect early signs of distress.
   • Consider voluntary audit or independent review to boost stakeholder confidence.

5. Strategic Planning:

   • Develop a detailed business plan with cash flow forecasts to anticipate and address future financial challenges.
   • Evaluate market positioning in the sectors served to ensure sustainable growth.

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