YAFFA STREET TRADING LTD

Executive Summary

YAFFA STREET TRADING LTD presents a stable but modest financial position with positive net assets and timely filings. However, the very limited scale of operations, declining cash reserves, and recent director turnover raise concerns about operational sustainability and governance stability. Further due diligence into liquidity management and operational activity is recommended to fully assess risk exposure.

YAFFA STREET TRADING LTD - Analysis Report

Company Number: 12876380

Analysis Date: 2025-07-29 19:02 UTC

1. Risk Rating: MEDIUM
   While the company shows positive net current assets and net assets, the limited scale of operations, low cash reserves, and no employees indicate potential operational vulnerabilities. The absence of liabilities in the latest period is positive but may reflect limited trading or reporting nuances rather than robust financial strength.

2. Key Concerns:

• Liquidity Position: Cash at bank decreased significantly from £17,191 in 2023 to £7,806 in 2024. The absence of current liabilities in 2024 raises questions about payment cycles or completeness of creditor recognition.
• Operational Scale and Sustainability: No employees were reported in both years, which may indicate minimal or non-traditional operations, potentially reliant on directors or outsourced arrangements, posing risks to ongoing business activities.
• Control Concentration and Management Turnover: The company’s control is concentrated in a single individual holding 75-100% of shares and voting rights. Recent director changes (three directors resigning in 2024 and one appointed) may signal governance instability or restructuring.

3. Positive Indicators:

• Net Asset Stability: The company maintains positive net assets of £10,578, unchanged over the last two financial years, suggesting some retained capital buffer.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• No Current Liabilities: As of the last accounts, there are no current liabilities, which reduces immediate solvency concerns.

4. Due Diligence Notes:

• Verify the nature and source of cash flow and working capital management, especially the reason for the cash decrease and absence of creditors in 2024.
• Investigate the company’s operational model given zero employees and the SIC classification as take-away food shops and mobile food stands. Confirm if the business is actively trading and generating revenue.
• Review director changes and governance arrangements to assess management stability and the rationale behind turnover. Also, confirm if the sole controlling shareholder is actively involved.
• Assess if there are any off-balance-sheet liabilities or contingent risks not disclosed in the accounts.