Company Number: 12878263

Analysis Date: 2025-07-29 20:31 UTC

1. Credit Opinion:
   DECLINE. Yale Software Ltd exhibits weak liquidity and a consistently negative net working capital position, indicating an inability to meet short-term liabilities from current assets. Despite some growth in fixed assets, the company's current liabilities significantly exceed current assets, which poses a high risk to debt servicing capability. The absence of an audit and limited financial disclosures further constrain confidence in financial transparency and management robustness.

2. Financial Strength:
   The company’s balance sheet shows fixed assets valued at £510k but current liabilities amount to £514k, leading to a net current liability of approximately £495k as of 31 March 2024. Shareholders' funds remain positive but very low (£14.9k), indicating minimal equity buffer. The trend over recent years shows persistent negative working capital and marginal net assets, reflecting weak financial stability and elevated leverage risk for a micro-entity.

3. Cash Flow Assessment:
   Current assets are minimal (£18.4k), largely insufficient to cover short-term debts, which suggests potential liquidity strain. The negative net current assets imply reliance on external financing or asset liquidation to meet obligations. No information on cash flows or profitability is provided, but the worsening working capital trend signals operational cash flow challenges.

4. Monitoring Points:

• Monitor changes in current liabilities and the company's ability to reduce or restructure short-term debt.
• Watch for improvements in liquidity ratios, particularly current ratio and quick ratio.
• Review future accounts for evidence of profitability or cash flow improvements.
• Assess management actions toward strengthening working capital and financial controls.
• Keep track of any new debt facilities or creditor arrangements that may impact solvency.