YARED STEPHENSON LTD

Executive Summary

Yared Stephenson Ltd is a newly formed entity with no trading history and minimal financial substance, resulting in extremely weak financial strength and no demonstrated cash flow capability. Given these factors, credit exposure is high and approval is not recommended at this stage. Future credit consideration should await evidence of operational activity and improved financial metrics.

YARED STEPHENSON LTD - Analysis Report

Company Number: 14402709

Analysis Date: 2025-07-20 18:16 UTC

1. Credit Opinion: DECLINE
   Yared Stephenson Ltd is a very recently incorporated private limited company with minimal financial activity to date. The latest filed accounts for the 13-month period ending October 31, 2023, show virtually no trading activity—no turnover, no fixed assets, and negligible net assets of £1. The director’s note confirms no business has been conducted. Without any trading history, revenue, or cash generation, the company lacks demonstrated ability to service debt or meet commercial obligations. The business is essentially dormant, and credit risk is high due to the absence of financial track record or operational substance.

2. Financial Strength:
   Balance sheet strength is minimal. The company reports only £2 in net current assets and £1 in shareholders’ funds, reflecting nominal share capital and no retained earnings. There are no fixed or tangible assets, and the company employs no staff. This extremely weak equity base provides no cushion against operational losses or creditor claims, indicating low financial resilience.

3. Cash Flow Assessment:
   There is no evidence of cash inflows or operating cash flow. The company holds no significant current assets beyond £2 in prepayments/accrued income and has no reported liabilities except minor accruals of £1. The absence of trading means no working capital cycle is established, and liquidity is essentially non-existent. This precludes any capacity to service debt or finance operational needs internally.

4. Monitoring Points:

• Monitor future trading activity and revenue generation to assess operational viability.
• Watch for subsequent financial filings indicating improved asset base or equity injection.
• Track whether the company develops working capital and cash balances consistent with business growth.
• Keep watch on director actions or changes in control that may impact financial strategy.