Company Number: 13549737

Analysis Date: 2025-07-20 19:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Yaxley Developments 2 Limited is a relatively new private limited company (incorporated 2021) operating in real estate letting and trading. The company is active and not in liquidation or administration. However, the company’s latest accounts are overdue (as of March 2023) though the confirmation statement is up to date. Financially, the company shows a very thin net asset base (£186) and significant long-term liabilities (£795,920), indicating a high gearing level. This suggests dependency on external funding or related-party loans. Given the lack of profitability information (income statement not filed) and limited working capital, credit exposure should be cautiously considered and likely require additional security or guarantees.

2. Financial Strength:

• Total assets mainly consist of stock (£717,532) and debtors (£82,124), but there is almost no cash (£200).
• Current liabilities are low (£3,750), but the company carries large long-term creditors (£795,920), which may represent shareholder or related party loans.
• Net assets are nominal (£186), indicating minimal equity buffer.
• The company has no reported employees, and no profit was declared in the latest accounts, suggesting limited operational scale or early-stage development.

3. Cash Flow Assessment:

• Cash holdings are negligible, which raises concerns about liquidity to meet immediate obligations without reliance on receivables conversion or additional funding.
• Net current assets are positive (£796,106) primarily due to stock and debtors, but the liquidity profile depends heavily on the realizability of stock and timely collection of debtors.
• Absence of income statement and cash flow statement hinders a fuller assessment, but the limited cash and high long-term liabilities suggest cash flow constraints.

4. Monitoring Points:

• Timely filing of overdue accounts to verify profitability and cash flow trends.
• Monitor the nature and terms of the large long-term creditors to assess repayment risk and potential refinancing needs.
• Regular review of stock turnover and debtor aging to ensure working capital efficiency.
• Watch for director changes and any indications of financial distress or restructuring.
• Assess any changes in control or related party transactions that could impact credit risk.