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.