Company Number: 13110473

Analysis Date: 2025-07-19 12:47 UTC

Financial Health Assessment for YS FUTURE LTD

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1. Financial Health Score: D

Explanation:
YS FUTURE LTD shows signs of financial stress primarily due to its persistent and significant net current liabilities (negative working capital) and very low net asset base. While the company holds substantial fixed assets in real estate, the balance sheet reveals liquidity challenges and a fragile equity position. This score reflects a company that is currently solvent but exhibits symptoms that warrant close monitoring and remedial action to avoid deeper financial distress.

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2. Key Vital Signs:

Metric	Latest (2024) Value	Interpretation
Fixed Assets	£768,128	Healthy asset base, indicating investment in real estate, core to the business model.
Current Assets	£8,896	Very low liquid assets — a symptom of tight liquidity ("thin pulse").
Current Liabilities	£283,213	High short-term obligations, creating pressure to meet immediate debts.
Net Current Assets (Working Capital)	-£274,317	Negative working capital — a "symptom of distress" indicating potential cash flow difficulties.
Creditors > 1 Year	£487,085	Large long-term debts that must be managed carefully to avoid solvency risk.
Net Assets (Equity)	£3,382	Very low shareholder funds, indicating minimal cushion against liabilities ("weak immune system").
Share Capital	£1	Minimal initial capital, typical for micro-entities, but highlights reliance on liabilities.
Employee Count	1	Minimal staff, low overheads, typical for asset-holding entities.

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3. Diagnosis:

YS FUTURE LTD operates in the real estate management and investment sector, owning significant fixed assets aligned with its SIC codes. However, the company is showing "symptoms of financial strain" primarily due to its consistently negative net current assets (working capital deficit) over the last few years. This implies that the company may struggle to cover its short-term debts with available liquid assets, which can lead to liquidity challenges.

The high level of creditors falling due within one year compared to tiny current assets suggests the company is heavily reliant on financing or creditor support to sustain day-to-day operations. Although the company holds large fixed assets, these are not readily liquid and cannot easily be converted to cash to meet immediate obligations.

The net asset value is positive but marginal, indicating the business is barely solvent on a balance sheet basis. This thin equity "immune system" leaves the company vulnerable to shocks such as falling asset values or increasing liabilities. The stable fixed asset base with minimal changes year-on-year suggests no recent asset disposals or major investments.

Given these factors, the financial condition can be described as fragile but not yet critical. The company must address its liquidity "pulse" to avoid a risk of distress or insolvency.

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4. Recommendations:

• Improve Liquidity Position:
  Seek ways to increase current assets, particularly cash reserves. This may involve negotiating longer payment terms with creditors, collecting receivables faster, or injecting additional working capital.

• Restructure Short-Term Debt:
  Explore refinancing options to convert some current liabilities into longer-term debts, easing immediate pressure on cash flow.

• Asset Management:
  Assess if any fixed assets could be sold or leveraged to generate liquidity without impairing core operations.

• Financial Planning and Monitoring:
  Implement regular cash flow forecasting and scenario planning to anticipate liquidity needs and avoid surprises.

• Capital Injection:
  Consider capital contributions from the sole shareholder to strengthen equity and provide a financial buffer.

• Operational Efficiency:
  Continue maintaining low operating expenses given the minimal staff, but carefully monitor any cost increases.

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