YAY MIX LTD

Executive Summary

Yay Mix Ltd demonstrates high financial risk with sustained and increasing negative net assets and substantial net current liabilities, indicating poor solvency and liquidity. While compliance filings are current, the company’s ability to continue as a going concern warrants further investigation. Investors should carefully review operational viability and director plans before engagement.

YAY MIX LTD - Analysis Report

Company Number: 13603130

Analysis Date: 2025-07-29 13:46 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to large negative net assets and net current liabilities, indicating inability to meet short-term obligations. The extent of net liabilities has increased substantially over three years, raising serious concerns about financial stability.

2. Key Concerns:

• Severe Negative Net Assets: The net assets position deteriorated from -£40,641 in 2021 and 2022 to -£65,417 in 2023, showing growing accumulated losses.
• Negative Working Capital: Net current liabilities stood at -£65,067 in 2023, meaning current liabilities far exceed current assets, posing liquidity risk.
• Single Director and Shareholder: The company is controlled entirely by one individual who is also the sole director, which may limit governance oversight and operational resilience.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, reducing regulatory compliance risk at this time.
• Micro-Entity Status: Operating as a micro-entity with minimal employees (1) and limited filing requirements reduces administrative burdens.
• No Indication of Insolvency Proceedings: The company is active and not in liquidation or administration.

4. Due Diligence Notes:

• Investigate the causes of the large and growing accumulated losses and negative equity to understand business sustainability.
• Review cash flow statements or bank information (if available) to assess liquidity beyond balance sheet snapshots.
• Understand the business model and revenue generation given the low current assets and significant trade or other payables implied by current liabilities.
• Assess the director’s plans for addressing solvency issues and potential need for capital injection or restructuring.
• Verify any contingent liabilities or related party transactions that may impact financial position.