Y CAKIR LTD

Executive Summary

Y Cakir Ltd shows a growing net asset base but continues to have negative working capital, indicating potential short-term liquidity challenges. The company’s micro scale and limited current assets suggest credit approval should be conditional with close monitoring of cash flow and working capital. Overall, the business has some financial resilience but requires prudent credit limits aligned with its cash flow capacity.

Y CAKIR LTD - Analysis Report

Company Number: 14156501

Analysis Date: 2025-07-29 20:20 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Y Cakir Ltd demonstrates modest growth in net assets from £7,052 in 2023 to £11,733 in 2024, indicating some improvement in financial position. However, persistent negative net current assets (working capital deficits of £1,766 in 2024 and £7,947 in 2023) raise concerns about short-term liquidity and ability to meet current liabilities promptly. The company operates in the unlicensed restaurants and cafes sector, which can be volatile, and has a small employee base (2 employees), implying limited operational scale. Given these factors, credit facilities may be extended but should be conditional on ongoing monitoring of liquidity and cash flow, with limits aligned to the company's working capital capacity.

2. Financial Strength
   The company’s balance sheet is characterized by low fixed assets (£13,500) and a small overall asset base, consistent with its micro-entity status. Net assets have increased by approximately 66% year-on-year, reflecting retained earnings or capital injections, which strengthen equity. However, the negative net current assets suggest the company relies on short-term financing or owner funding to meet liabilities. The absence of significant long-term liabilities reduces financial risk, but the current liabilities slightly exceed current assets, which is a weakness in financial strength.

3. Cash Flow Assessment
   Current liabilities of £9,638 exceed current assets of £7,872 as of June 2024, resulting in a working capital deficit of £1,766. While an improvement over the prior year’s larger deficit, this indicates potential liquidity pressure. Limited cash or liquid assets may constrain the company’s ability to cover immediate operational expenses without additional funding or credit. The small workforce and micro account category suggest limited operating cash flow generation capacity, so cash flow management should be closely reviewed.

4. Monitoring Points

• Working capital trends: watch for continued improvement or further deficits.
• Timely payment of trade creditors to avoid supplier strain.
• Cash flow from operations: assess ability to generate positive cash flow as the business scales.
• Profitability metrics once available, since the P&L is not filed.
• Any changes in sector conditions affecting consumer demand for unlicensed restaurants and cafes.