Company Number: 14563709

Analysis Date: 2025-07-29 18:45 UTC

1. Credit Opinion: APPROVE with conditions.
   YA DUBAI LTD is a recently incorporated micro private limited company operating in the retail and wholesale cosmetics sector. The company has demonstrated a strong improvement in net assets from £1,149 at the end of 2022 to £20,204 at the end of 2024, reflecting capital injection or retained earnings growth. Current liabilities have increased but are closely matched by current assets, resulting in a marginally positive working capital of £502 as of the latest accounts. The director and sole significant controller appears engaged and stable. However, given the company’s micro size, minimal operating history, and tight liquidity position, credit approval should be conditional on monitoring updated trading performance and timely filing of future accounts to confirm ongoing operational viability and cash flow generation.

2. Financial Strength:
   The balance sheet shows a modest but improving financial position. Fixed assets have grown from £5,652 to £19,702, suggesting investment in tangible assets or equipment. Current assets doubled from £25,636 to £54,128, while current liabilities rose from £30,139 to £53,626, leading to a small but positive net current asset position. Net assets have increased substantially, supported by share capital or reserves rising from £1,149 to £20,204. The company’s equity base is solid relative to its size, but the tight working capital indicates limited buffer against unexpected outflows or downturns.

3. Cash Flow Assessment:
   With current assets barely exceeding current liabilities, liquidity is tight. The company does not disclose cash or bank balances specifically, but the net current assets position of only £502 suggests limited short-term liquidity. The average number of employees fell from 7 to 0 in the latest period, which may indicate cost-cutting or restructuring to preserve cash. It is critical to ensure that the company maintains sufficient cash flow to meet creditor payments and operational expenses. The lack of audit and micro-entity reporting means limited detail on cash flow, so the bank should seek periodic cash flow forecasts or management accounts to confirm liquidity adequacy.

4. Monitoring Points:

• Timely filing of next annual accounts and confirmation statements to ensure statutory compliance.
• Liquidity trends, especially current ratio and cash balances, to assess ongoing ability to meet short-term obligations.
• Trading performance and profitability to confirm sustainability of capital growth and working capital.
• Any changes in director or significant control structure that may impact governance or credit risk.
• Debtor and creditor aging profiles to identify potential collection or payment delays.