YOU ARE UNCOMMON LTD

Executive Summary

YOU ARE UNCOMMON LTD is currently experiencing financial tightening, notably in liquidity and equity, reflecting symptoms of operational and financial stress. While the company remains solvent, its financial cushion has significantly diminished, necessitating proactive cash flow management and cost control to avoid further deterioration. With timely strategic interventions, the company can stabilize and improve its financial health.

YOU ARE UNCOMMON LTD - Analysis Report

Company Number: 12452802

Analysis Date: 2025-07-29 16:57 UTC

Financial Health Assessment: YOU ARE UNCOMMON LTD (Year Ended 31 March 2024)

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1. Financial Health Score: C

Explanation:
The company shows some signs of financial strain compared to previous years. While it remains solvent with positive net current assets and shareholders’ funds, there has been a significant decline in liquidity and overall asset base in the latest financial year. This score reflects a condition akin to a patient with manageable but concerning symptoms requiring attentive care.

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2. Key Vital Signs

Metric	2024 (Latest Year)	2023 (Prior Year)	Interpretation
Fixed Assets	£11,157	£16,155	Slight decline indicates possible asset disposals or depreciation.
Current Assets	£88,545	£206,814	Sharp drop (57% decrease) signals diminished short-term resources—potential liquidity risk.
Current Liabilities	£62,830	£77,481	Moderate reduction in short-term obligations, but not proportional to asset decline.
Net Current Assets (Working Capital)	£25,715	£129,333	Significant decrease (80% drop) reflecting tighter liquidity and working capital constraints.
Total Assets Less Current Liabilities	£36,872	£145,488	Decline indicates lower overall net asset value, reducing financial cushion.
Shareholders’ Funds (Equity)	£36,872	£145,488	Equity erosion suggests retained earnings or capital have been drawn down or losses absorbed.
Average Employees	5	6	Slight reduction in workforce, possibly a response to financial pressures.

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3. Diagnosis: Financial Symptoms and Underlying Business Health

• Liquidity Stress: The steep drop in current assets, especially cash or receivables, indicates the company may be experiencing cash flow difficulties. This is a classic symptom of financial distress that requires immediate attention to avoid solvency issues.
• Equity Erosion: The marked decrease in shareholders’ funds suggests the company has either incurred losses, returned capital, or reduced reserves. This weakens the financial resilience akin to a patient losing vital reserves.
• Asset Reduction: Fixed assets decreased modestly, potentially showing asset sales or natural depreciation without replacement investment, hinting at cautious capital expenditure or resource constraints.
• Working Capital Decline: The reduced working capital signifies less buffer to meet short-term obligations, which can strain day-to-day operations if not addressed.
• Operational Downsizing: The slight reduction in employee numbers could be a management response to align costs with revenue or cash availability.
• Control and Governance: The company is controlled predominantly by one individual with significant voting rights and director appointment powers, which may concentrate decision-making but also risk limited oversight.

Overall, the financial analysis reveals a company facing liquidity tightening and declining financial strength, but not yet in critical distress or insolvency. The symptoms suggest a need for remedial measures to restore financial health.

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4. Recommendations: Healing the Financial Health

1. Enhance Cash Flow Management:

   • Prioritize accelerating receivables collection and managing payables strategically to improve liquidity.
   • Consider short-term financing options or overdraft facilities as a liquidity safety net.

2. Cost Control and Efficiency:

   • Review operating expenses for potential reductions without compromising core business activities.
   • Optimize workforce and resource allocation aligned with revenue streams.

3. Capital Structure Review:

   • Explore options to strengthen equity, such as capital injection from shareholders or reinvestment of profits.
   • Avoid excessive debt that could exacerbate financial strain.

4. Asset Utilization:

   • Assess fixed asset usage for operational efficiency and consider strategic reinvestment if growth opportunities exist.

5. Governance and Oversight:

   • Introduce or strengthen financial controls and reporting mechanisms to monitor ongoing financial health.
   • Consider advisory support or external expertise to guide turnaround strategies.

6. Strategic Planning:

   • Develop a clear business plan to restore growth and profitability, focusing on core competencies in employment placement activities (SIC 78109).

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