MAN YEE ABERDEEN LIMITED

Executive Summary

MAN YEE ABERDEEN LIMITED is an early-stage food takeaway business showing gradual recovery from prior losses but remains financially fragile with negative net assets and working capital. Conditional credit approval is advised, contingent on ongoing director support and demonstrable improvements in liquidity and profitability. Close monitoring of cash flow and operational metrics is essential to mitigate credit risk.

MAN YEE ABERDEEN LIMITED - Analysis Report

Company Number: SC704043

Analysis Date: 2025-07-20 18:08 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MAN YEE ABERDEEN LIMITED is a small, recently incorporated private limited company operating in the takeaway food sector. The company has reported consecutive years of negative net current assets and shareholder funds, though the deficit has improved in the latest financial year. The director is the sole significant controller and has confirmed ongoing support, which is critical given the company's current financial position. Approval is recommended on a conditional basis, requiring continued director support and improvement in liquidity and profitability metrics to demonstrate sustainable trading and debt servicing capability.

2. Financial Strength:
   The company’s balance sheet shows persistent net current liabilities (£1,026 as of July 2024) and negative shareholders’ funds (£1,026 deficit), although this is a marked improvement from prior years’ deeper deficits (£3,704 net current liabilities and £3,704 negative equity in 2023). Fixed assets are not disclosed, indicating limited long-term assets backing. The modest share capital (£100) and accumulated losses reflect early stage financial weakness typical of a startup. The business remains reliant on director funding and has not yet built significant equity or retained earnings.

3. Cash Flow Assessment:
   Cash balances are low but have improved from £4,645 in 2023 to £6,351 in 2024. However, current liabilities exceed current assets, signaling tight liquidity and potential short-term cash flow pressures. Working capital remains negative, suggesting the company may struggle to meet short-term obligations without additional funding or improved cash generation. The director’s statement of ongoing support is a key mitigating factor but this reliance increases risk. Regular monitoring of cash flow forecasts and creditor payment patterns is essential.

4. Monitoring Points:

• Liquidity trends: cash balances and net current assets improvements.
• Profitability trajectory: ability to generate sustained positive net income beyond the £2,678 reported in 2024.
• Director support: confirmation of continued financial backing or capital injections as needed.
• Trade creditor behavior: any late or missed payments indicating cash flow distress.
• Employee count and payroll obligations to ensure operational scalability without overextension.
• Filing timeliness and compliance to avoid regulatory or reputational risks.