BIG YAK SOFTWARE LTD

Executive Summary

Big Yak Software Ltd is a financially stable micro-entity with a strong liquidity position and consistent growth in net assets, indicating low solvency and liquidity risk. The company maintains good regulatory compliance but would benefit from clarity on ownership structure and operational scalability. Overall, it presents a low-risk profile for investors, subject to further due diligence on ownership and cash flow sustainability.

BIG YAK SOFTWARE LTD - Analysis Report

Company Number: 12830674

Analysis Date: 2025-07-20 11:23 UTC

1. Risk Rating: LOW
   Big Yak Software Ltd demonstrates solid net current assets and positive net assets with no overdue filings, indicating sound financial health for a micro-entity. The consistent growth in net assets over recent years supports a low risk profile regarding solvency and liquidity.

2. Key Concerns:

• Limited Scale and Resources: As a micro-entity with only two employees and minimal fixed assets, the company might face operational constraints impacting scalability and market competitiveness.
• Concentration Risk: The company appears to be managed and controlled solely by one director, which could pose governance and succession risks.
• Lack of PSC Information: No persons with significant control are listed publicly, which may warrant further clarity on ownership structure and control.

3. Positive Indicators:

• Strong Liquidity Position: Net current assets increased to £77,850 in 2024 from £63,208 in 2023, suggesting an improving liquidity buffer to meet short-term obligations.
• Consistent Profit Retention: Shareholders’ funds have grown steadily from £10,222 in 2020 to £77,033 in 2024, reflecting retained earnings and financial stability.
• Compliance and Timeliness: All statutory filings including accounts and confirmation statements have been filed on time, suggesting good regulatory compliance and governance discipline.
• Clear Business Focus: The SIC code 62012 indicates a focused activity in business and domestic software development, consistent with the director’s occupation and company name.

4. Due Diligence Notes:

• Verify detailed ownership and ultimate control since PSC data is absent, to understand any risks or dependencies.
• Review cash flow statements (not provided) to confirm ongoing operational cash generation, especially given the small fixed asset base.
• Assess client base and revenue diversification to understand operational sustainability beyond the balance sheet.
• Confirm director’s capacity and any plans for business expansion or additional management support to mitigate concentration risk.