J&Y GLOBAL TRADING LTD

Executive Summary

J&Y GLOBAL TRADING LTD is a small, recently formed wholesale trading company with a simple financial structure and limited assets. Its declining current assets and net assets warrant cautious credit extension with ongoing liquidity monitoring. The company's concentrated ownership and minimal reporting history suggest credit should be conditional with close attention to operational cash flows and compliance filings.

J&Y GLOBAL TRADING LTD - Analysis Report

Company Number: 13825642

Analysis Date: 2025-07-20 13:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   J&Y GLOBAL TRADING LTD is an active private limited company incorporated recently (2022). The company operates in non-specialised wholesale trade and agency services. Financially, it remains a micro-entity with modest current assets and net assets, indicating a small scale operation. The absence of fixed assets and limited working capital suggest a lean business model possibly reliant on short-term transactions. The single director and 100% shareholder control by Mr. Jian Yuan indicates centralized management, simplifying accountability but also concentrating risk. Given the company’s young age, small size, and limited financial history, credit approval should be conditional on regular monitoring of liquidity and turnover trends to ensure ongoing ability to service debt.

2. Financial Strength:
   The balance sheet shows a decline in current assets from £4,980 (2023) to £1,875 (2024), which reduces net current assets and total net assets by over 60%. There are no fixed assets, highlighting a lack of long-term capital investment. Shareholders’ funds mirror net assets and have declined similarly. The company maintains positive net current assets but at a low absolute level, reflecting limited buffer against liabilities. The micro-entity status means reporting detail is limited, but the current financial position indicates a fragile but positive equity base without leverage. There is no indication of external borrowings, which reduces financial risk.

3. Cash Flow Assessment:
   Current assets are minimal and have decreased significantly year-over-year. With one employee only, overheads are likely low, but cash reserves appear tight. The absence of detailed profit and loss data and cash flow statements limits full liquidity analysis. However, the positive net current assets suggest the company can meet short-term obligations currently. Working capital management will be critical, and any increase in liabilities or drop in receivables could stress liquidity. The business must maintain steady cash inflows from trading to sustain operations.

4. Monitoring Points:

• Track current assets and net current assets quarterly to detect liquidity deterioration.
• Monitor turnover and profit margins (when available) to assess operational viability.
• Review director’s conduct and any changes in ownership or management control.
• Watch for timely filing of accounts and confirmation statements to ensure compliance.
• Evaluate any credit exposure or new borrowings that may impact financial stability.