YB DESIGN STUDIO LTD

Executive Summary

YB DESIGN STUDIO LTD shows a solid financial footing with positive net assets and no regulatory compliance issues, supporting a low risk rating for solvency and liquidity. However, the company’s small scale, reliance on director financing, and lack of disclosed revenue figures warrant further review to ensure operational sustainability. Overall, the company appears stable but limited in scale and reliant on director support.

YB DESIGN STUDIO LTD - Analysis Report

Company Number: 13115300

Analysis Date: 2025-07-20 12:02 UTC

1. Risk Rating: LOW
   YB DESIGN STUDIO LTD demonstrates a stable financial position with positive net current assets, positive net assets, no overdue filings, and a clear ownership structure. The company’s liquidity and solvency indicators suggest it can meet its obligations in the short and medium term.

2. Key Concerns:

• Modest scale of operations: The company employs only one person and has limited fixed assets and share capital (£100), indicating a small operational base which may limit growth and resilience.
• Reliance on director’s funds: Increasing long-term creditor balance classified as "Director’s account" (£1,289 in 2024 vs £768 in 2023) suggests the director is providing financing, which may create dependency on this source.
• Limited revenue and debtor activity: Trade debtors are zero in the latest year (2024) compared to £650 in 2023, which could indicate reduced sales or timing issues in revenue recognition to be monitored.

3. Positive Indicators:

• Positive net current assets (£4,015 in 2024) and net assets (£3,457 in 2024) show good short-term liquidity and overall solvency.
• No overdue accounts or confirmation statements, indicating sound regulatory compliance and governance.
• Consistent accounting policies with compliance to FRS 102 small company regime and exemption from audit, which is appropriate for its size.
• The company operates in specialized design and architectural activities, a sector with potential for repeat business and contractual income.

4. Due Diligence Notes:

• Examine detailed turnover and profitability trends to confirm operational sustainability, as turnover figures are not disclosed here.
• Review the nature and terms of the director’s loan account to assess financial risk and repayment expectations.
• Investigate the absence of trade debtors in 2024 to understand if this is due to timing, change in business model, or revenue decline.
• Confirm the company’s contract pipeline and client base given the small employee count and niche industry focus.
• Verify no hidden contingent liabilities or off-balance sheet items given the small scale and director financing.