YBY LIMITED

Executive Summary

YBY Limited exhibits consistent negative net assets and a fragile liquidity position, undermining its ability to service debt or absorb financial shocks. The company’s minimal operational footprint and reliance on creditor funding raise concerns about its creditworthiness. Without significant financial improvement or capital support, extending credit is not advisable at this time.

YBY LIMITED - Analysis Report

Company Number: 12476209

Analysis Date: 2025-07-29 17:42 UTC

1. Credit Opinion: DECLINE. YBY Limited's financial statements show persistent negative net assets and net liabilities, indicating an insolvent balance sheet position. Despite the company being active and filing on time, the micro-entity accounts reveal a lack of profitability or equity buffer to support debt servicing. The company's primary activity as a holding entity with no employees and minimal fixed assets suggests limited operational cash generation capability. The consistent negative shareholders’ funds over multiple years raise concerns about sustainability and repayment capacity.

2. Financial Strength: The balance sheet reflects net liabilities of £1,228 as of 29 February 2024, unchanged from prior years. Current liabilities (£132,150) slightly exceed current assets (£132,120), resulting in a very thin working capital margin. The company holds negligible fixed assets (£50), and the large creditor balance falling after more than one year (£132,150) implies significant long-term obligations without corresponding asset backing or equity. The absence of retained earnings or P&L reserves and ongoing negative net assets highlight weak financial resilience.

3. Cash Flow Assessment: The company shows minimal current assets in the form of cash or equivalents (£132,120), but these are nearly offset by current liabilities (£132,150), providing essentially no liquidity cushion. The micro-entity status and lack of employees indicate limited operating activity, suggesting cash inflows may be dependent on external funding or related party transactions. Working capital is essentially neutral, posing high risk to meeting short-term obligations without additional capital injection or operational cash generation.

4. Monitoring Points:

• Net asset position and equity changes in upcoming accounts filings.
• Liquidity ratios, especially current ratio and quick ratio.
• Evidence of profitability or cash flow improvements.
• Changes in creditor terms or any restructuring of long-term liabilities.
• Any new business activities or operational expansions that could improve revenue streams.
• Director conduct and PSC updates for signs of governance or control risks.