Company Number: 15691389

Analysis Date: 2025-07-29 12:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   YOGALATES THERAPY LTD is a newly incorporated micro-entity with limited operating history (incorporated April 2024) and unaudited accounts for its first financial year ending April 2025. The company shows a modest asset base and positive net equity, but carries medium-term liabilities exceeding current liabilities, which warrants cautious credit exposure. Given the lack of trading history and absence of employees, approval should be conditional on ongoing monitoring of operational performance and cash generation once trading activities scale. Director ownership concentration (Kerry Sarah Quinn) suggests clear control but also increases risk if management capacity is limited.

2. Financial Strength:

• Fixed assets stand at £28,646, indicating some investment in tangible or intangible long-term resources.
• Net current assets (Current assets minus current liabilities) are positive: Current assets include fixed assets plus prepayments and accrued income totaling £44,782; current liabilities are £5,093, yielding healthy short-term liquidity.
• However, the company has non-current liabilities of £21,806, which exceeds the current liabilities and reduces net assets to £17,883 shareholders’ funds. This indicates some level of gearing and potential medium-term debt servicing requirement.
• Overall, the balance sheet shows a sound equity base for a micro business but with some leverage that needs management scrutiny.

3. Cash Flow Assessment:

• The company reports no employees and presumably limited operational scale in the first year. Cash flow data is not explicitly stated, but the presence of accrued income and prepayments (£16,136) suggests some initial trading activity or advance payments.
• Current liabilities are low relative to current assets, indicating reasonable short-term liquidity to meet immediate obligations.
• The medium-term creditors (£21,806) will require monitoring to ensure the company can generate sufficient operating cash flows to meet these obligations as they fall due.
• Absence of detailed cash flow statements and profit/loss figures limits deeper cash flow analysis.

4. Monitoring Points:

• Business growth and revenue development to confirm the company can generate sustainable cash flows.
• Debt servicing capacity, especially relating to medium-term liabilities of £21,806.
• Director’s ability to scale operations and manage financial obligations effectively given sole control and no reported employees.
• Timely filing of future accounts and confirmation statements to ensure compliance and transparency.
• Any changes in capital structure or borrowing that could impact financial stability.