YORKSHIRE CANINE ACADEMY LTD

Executive Summary

Yorkshire Canine Academy Ltd exhibits a stable and improving financial condition with positive liquidity and growing equity, indicative of sound financial management. While asset values show normal wear and profitability details are limited, the company maintains a healthy cash flow and working capital position. To enhance financial wellness, the company should focus on detailed profitability tracking, governance improvements, and continued vigilance on cash flow and asset management.

YORKSHIRE CANINE ACADEMY LTD - Analysis Report

Company Number: 13304440

Analysis Date: 2025-07-20 14:40 UTC

Financial Health Assessment of Yorkshire Canine Academy Ltd (as at 31 March 2024)

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1. Financial Health Score: B

Explanation:
Yorkshire Canine Academy Ltd shows solid improvement in its financial position, with positive net current assets and growth in net assets over the past year. The company's liquidity is healthy, supported by a strong cash position relative to current liabilities. However, tangible and intangible asset values have decreased slightly, and current liabilities remain significant. The absence of an operating profit or turnover data in the provided accounts limits a full profitability analysis, so the grade reflects a cautiously positive outlook with room for enhancement.

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2. Key Vital Signs

Metric	2024 Figure (£)	Interpretation
Fixed Assets	30,580	Moderate investment in long-term assets; slightly down from prior year, indicating some asset depreciation.
Current Assets (Cash only)	80,453	Strong liquidity; cash covers current liabilities comfortably.
Current Liabilities	77,856	High short-term obligations, but adequately covered by cash.
Net Current Assets	2,597	Positive working capital, a sign of short-term financial stability.
Net Assets / Shareholders' Funds	33,177	Equity base has grown significantly from £21,955 in 2023, reflecting retained earnings or capital injections.
Share Capital	100	Minimal share capital, typical for small private companies.
Number of Employees	5	Small workforce consistent with small company classification.

• Liquidity "Pulse": The company’s cash position exceeds its current liabilities by a narrow margin, indicating a healthy "cash flow heartbeat" that can meet immediate obligations.

• Asset Health: Tangible and intangible assets have decreased slightly, showing some wear but no signs of impairment or loss.

• Working Capital "Symptom": The shift from negative to positive net current assets suggests improved operational cash management and short-term solvency.

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3. Diagnosis

Yorkshire Canine Academy Ltd presents as a financially stable small private company with improving liquidity and equity position. The positive net current assets and increased shareholder funds indicate effective financial management and profitability retention or capital investment.

The company is not burdened by long-term debt, and its current liabilities are well covered by cash and other current assets, signaling healthy short-term financial resilience. The slight decline in fixed assets and amortisation of goodwill suggests normal asset aging and usage.

No signs of financial distress like negative net assets, excessive debt, or liquidity strain are evident. The company maintains compliance with filing deadlines and has no overdue returns or accounts, which is a good indicator of operational governance and compliance health.

However, the absence of detailed profit and loss data (e.g., turnover, profitability) in the filings restricts a complete assessment of business performance and cash generation quality. The company’s dependence on its directors and key controlling shareholder (owning 75-100%) indicates concentrated control, which may pose governance risks if not managed carefully.

Overall, the company’s financial "vital signs" suggest a stable condition with a positive trend in asset growth and liquidity, but vigilance is required to ensure continued profitability and operational efficiency.

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4. Recommendations

• Enhance Profitability Reporting: Provide more detailed profit and loss information in future accounts to better monitor revenue streams and cost control, enabling early detection of any operational "symptoms" like declining sales or rising expenses.

• Strengthen Working Capital Management: Although current assets exceed liabilities, maintain tight control over receivables and payables to preserve healthy liquidity levels and prevent cash flow "arrhythmias."

• Asset Review and Investment: Monitor fixed assets for potential replacement or upgrade needs to avoid sudden impairment losses, particularly given the ongoing amortisation of goodwill and depreciation of tangible assets.

• Governance and Succession Planning: Given the concentration of control in a single shareholder and director group, consider implementing formal governance structures and succession plans to mitigate risks related to management continuity.

• Leverage Digital Presence: With an active website and social media channels, capitalize on marketing and client engagement opportunities to expand revenue and improve market position.

• Monitor Tax and Social Security Liabilities: Current liabilities include significant taxation and social security costs; ensure these are managed proactively to avoid any future cash flow strain.

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