Y123 PROJECTS LIMITED

Executive Summary

Y123 Projects Limited, a newly incorporated micro-entity engaged in real estate trading, currently demonstrates high financial risk characterized by negative net assets and significant working capital deficits. While compliance with statutory filings and a solid fixed asset base are positive factors, the company’s liquidity and solvency position raise substantial concerns requiring thorough due diligence before investment consideration.

Y123 PROJECTS LIMITED - Analysis Report

Company Number: 15059121

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

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with negative net assets of approximately £21,000 and net current liabilities exceeding £442,000, indicating an inability to meet short-term obligations from current assets. This places substantial risk on financial stability.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s balance sheet shows net liabilities and a large working capital shortfall, which signals potential insolvency risk.
• High Current Liabilities Relative to Minimal Current Assets: Current liabilities of £446,088 dwarf current assets of £3,768, suggesting liquidity issues and potential cash flow constraints.
• Absence of Audited Financials and Limited Operating History: Being a micro-entity incorporated in 2023 with unaudited accounts limits insight on operational performance and financial controls, increasing uncertainty.

3. Positive Indicators:

• Ownership and Control Concentrated in a Single Director: Mr. Liam Burke holds full ownership and voting rights, which could enable agile decision-making and streamlined governance.
• Fixed Assets Base: The company holds fixed assets valued at £422,300, which may represent tangible collateral or investment in operational capacity.
• Compliance with Filing Requirements: No overdue filings of accounts or confirmation statements, indicating regulatory compliance to date.

4. Due Diligence Notes:

• Investigate the nature and liquidity of fixed assets to assess their realizable value in meeting liabilities.
• Review cash flow forecasts and planned sources of liquidity given the severe working capital deficit.
• Examine business model sustainability and revenue generation given the company’s recent incorporation and negative equity position.
• Confirm any related party transactions or contingent liabilities that may impact financial health.
• Assess director’s plans to address the solvency issues and any external financing arrangements or creditor negotiations underway.