Company Number: 15222053

Analysis Date: 2025-07-29 16:44 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Yataiya Ltd is a newly incorporated small private limited company operating in the take-away food and unlicensed restaurant sector. Financials for its first 12-month period show a modest positive net asset position (£30,477) and positive net current assets (£3,727), indicating initial operational viability. However, the company’s limited trading history and relatively tight working capital position warrant a cautious approach. Approval is recommended subject to ongoing monitoring of cash flow and turnover growth to ensure sustainability and debt service capability.

2. Financial Strength:
   The balance sheet reflects a small but positive equity base supported mainly by retained earnings (profit and loss reserve of £30,476). Fixed assets comprise plant and machinery net of depreciation (£26,750), indicating some investment in operational capacity. Current assets (£35,230), largely cash (£29,580), exceed current liabilities (£31,503) by a small margin, providing a narrow liquidity buffer. The company has minimal share capital (£1), typical for a new small entity. Overall, the financial strength is modest but stable for a start-up, with no evident over-leverage or insolvency risk at this stage.

3. Cash Flow Assessment:
   Cash holdings of £29,580 relative to current liabilities of £31,503 suggest near-term liquidity is adequate but tight. Working capital of £3,727 is positive but limited, so the company may face cash flow constraints if operating expenses or payables increase unexpectedly. The company’s ability to convert stock (£5,650) into cash promptly will be critical. No external borrowings are indicated, so debt servicing risk is currently low. Continued cash flow discipline and turnover growth are essential to maintain operational liquidity.

4. Monitoring Points:

• Track monthly cash flow and working capital trends to detect any tightening liquidity.
• Monitor turnover and gross margin development to confirm business growth and profitability trajectory.
• Watch creditor days and tax liabilities closely to avoid payment delays or penalties.
• Review management changes and PSC (persons with significant control) involvement, particularly as the initial director resigned in April 2024 and a new director assumed control.
• Assess future financial statements for evidence of sustainable profit generation and increased equity buffers.