YOURPAWZ LTD

Executive Summary

YOURPAWZ LTD is currently experiencing financial strain characterized by negative working capital and net liabilities, indicative of liquidity and solvency challenges. Immediate focus on improving cash flow, managing costs, and possibly injecting capital is essential to stabilize the company’s financial health. With careful management and growth in revenues, the company can work towards a healthier financial position.

YOURPAWZ LTD - Analysis Report

Company Number: 14810998

Analysis Date: 2025-07-29 13:54 UTC

Financial Health Assessment: YOURPAWZ LTD

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1. Financial Health Score: D

Explanation:
The company shows significant financial distress with net liabilities exceeding current assets by £6,252. This negative net asset position indicates the company’s obligations outweigh its resources, a symptom akin to a patient showing signs of acute financial strain. While the company is still active and not in formal insolvency processes, the financial "vital signs" suggest caution.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1,661	Low level of liquid resources; limited "cash in the bank" and receivables.
Current Liabilities	7,913	Short-term debts and obligations; significantly higher than current assets, indicating liquidity risk.
Net Current Assets (Working Capital)	-6,252	Negative working capital, a critical "symptom" showing inability to cover short-term debts with short-term assets.
Net Assets (Shareholders’ Funds)	-6,252	Negative equity position; shareholder funds are in deficit, indicating accumulated losses or undercapitalization.
Employees	0	No employees recorded, which may reduce fixed costs but also indicates very early stage or limited operations.

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3. Diagnosis

YOURPAWZ LTD is in the early stages of its lifecycle, having been incorporated in April 2023. The financial statements for the year ending April 2024 reveal that the company is operating with a negative net asset base and negative working capital. This condition is analogous to a patient presenting with low blood pressure and weakness: the company lacks sufficient liquidity and equity to comfortably meet its short-term obligations.

The absence of employees suggests minimal operational activity or a lean structure, which might be intentional to conserve resources. However, the scale of liabilities relative to assets indicates that the company is currently relying on external financing or creditor support. This condition is a "symptom of distress" that requires close monitoring.

The director, Mr. Harjit Singh Johal, holds full control and ownership, which can be advantageous for quick decision-making and capital injections if needed.

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4. Recommendations

Immediate Actions:

• Address Liquidity Shortfall: Consider injecting additional capital or negotiating with creditors to restructure short-term obligations. Improving working capital is critical to avoid cash flow crises.

• Financial Planning: Develop a detailed cash flow forecast and budget to monitor incoming revenues and outgoing expenses, aiming to achieve positive net current assets.

• Cost Management: Maintain a lean operational structure to control costs during this fragile stage until revenues improve.

• Monitor Financial Ratios: Regularly track liquidity ratios (current ratio, quick ratio) and solvency measures to detect early signs of financial stress.

• Explore Financing Options: Investigate options such as shareholder loans, grants, or small business lending to strengthen the balance sheet and support growth.

Long-Term Strategies:

• Revenue Growth: Prioritize sales and marketing efforts aligned with the SIC code (agents involved in the sale of a variety of goods) to generate consistent cash inflows.

• Build Equity: Retain earnings and avoid unnecessary distributions to rebuild shareholders’ funds and improve net asset position.

• Regular Reporting: Ensure timely filing of accounts and confirmation statements to maintain compliance and transparency with Companies House.

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