THE TECH YODA LIMITED

Executive Summary

THE TECH YODA LIMITED is a newly established micro-entity with a stable but modest financial position, reflecting typical startup characteristics. It demonstrates sufficient working capital and equity to support limited credit exposure, but ongoing monitoring is essential due to its short trading history and scale. Conditional credit approval with prudent limits and regular financial reviews is recommended.

THE TECH YODA LIMITED - Analysis Report

Company Number: 14528432

Analysis Date: 2025-07-29 12:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   THE TECH YODA LIMITED is a recently incorporated micro-entity operating in the IT consultancy sector. The company shows a positive net asset position and positive working capital, indicating basic financial stability. However, as it is only in its first full financial year with modest asset and equity levels, credit should be extended cautiously and with conditions such as regular financial updates and limits aligned with its size and trading history. The absence of audit and limited operational history restrains the depth of financial insight.

2. Financial Strength:
   As at 31 December 2023, the company had fixed assets of £1,277 and current assets of £11,870 against current liabilities of £7,532, resulting in net current assets (working capital) of £4,338. Shareholders’ funds stood at £5,615, representing a positive equity base. The balance sheet indicates a sound, albeit modest, capital structure typical of a micro-entity startup. The company’s financial position is stable but limited in scale and depth, which is expected at this stage.

3. Cash Flow Assessment:
   Current assets exceeding current liabilities by approximately £4,300 suggests adequate short-term liquidity to meet immediate obligations. However, the low absolute cash and asset values highlight a potential vulnerability to cash flow shocks or unexpected expenses. The company employs only one person, indicating a lean cost base, but cash flow management will be critical to sustain operations and service any credit facilities.

4. Monitoring Points:

• Monitor revenue growth and profitability trends to ensure sustainable cash generation.
• Watch changes in working capital, especially current liabilities, to detect any liquidity stress.
• Regular updates on payment performance and credit utilization.
• Review upcoming filings for any changes in capital structure or director appointments.
• Keep an eye on external economic conditions impacting the IT consultancy industry.