YOUR RECOVERY AUTOMOTIVE LTD

Executive Summary

YOUR RECOVERY AUTOMOTIVE LTD is a micro-entity showing some financial improvement with positive net assets and good compliance. However, liquidity volatility and a small equity base present medium risk, compounded by recent management changes. Further due diligence on cash flow stability and director experience is recommended to assess operational sustainability.

YOUR RECOVERY AUTOMOTIVE LTD - Analysis Report

Company Number: 13701880

Analysis Date: 2025-07-20 12:24 UTC

1. Risk Rating: MEDIUM
   The company shows a recent improvement in net assets from a negative position to a positive £7,040 by the 2024 year-end, indicating some recovery in financial health. However, the scale of assets and equity remains very small, consistent with a micro-entity, and the volatility in net current assets year-on-year suggests potential liquidity fluctuations. The company is active and compliant with filing requirements, which reduces regulatory risk.

2. Key Concerns:

• Liquidity Volatility: Current assets increased significantly from £2,022 in 2023 to £16,362 in 2024, while current liabilities also rose, resulting in net current assets improving from negative £6,756 to positive £3,928. Such swings may indicate unstable cash flow management or irregular trading patterns.
• Small Capital Base: Net assets and shareholders’ funds are modest (£7,040), limiting the company’s buffer to absorb financial shocks or operational setbacks.
• Recent Change in Control and Management: The director and PSC changed in October 2023, which may impact operational continuity or strategic direction. The new director’s occupation as a mechanic suggests hands-on operational involvement but limited corporate governance experience, posing some governance risk.

3. Positive Indicators:

• Timely Filings & Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good compliance and transparency.
• Improved Financial Position: The company moved from negative equity in 2023 to positive equity in 2024, showing signs of financial recovery or improved profitability.
• Increasing Employee Base: Growth from 2 to 3 employees suggests some operational expansion or increased activity.

4. Due Diligence Notes:

• Verify the nature and sustainability of the increase in current assets and whether it reflects genuine cash or receivables collectible in normal course of business.
• Assess the operational track record and background of the current director, including any prior management experience and reputation.
• Review any related party transactions or financial support from the principal shareholder to understand capital structure and funding stability.
• Examine trading performance and profitability trends beyond balance sheet snapshots to confirm operational viability.
• Confirm no outstanding regulatory or legal issues, given the recent name change and management turnover.