YFIZZ MEDIA LTD

Executive Summary

YFIZZ MEDIA LTD demonstrates significant financial distress characterized by large and growing negative net assets and working capital deficits, indicating high solvency and liquidity risk. While the company maintains compliance with filing requirements and operates within a promising industry sector, the financial position raises serious concerns about operational sustainability. Further detailed financial and operational due diligence is essential to assess recovery prospects.

YFIZZ MEDIA LTD - Analysis Report

Company Number: 13113011

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant and persistent negative net assets and net current assets, indicating insolvency risks. Current liabilities far exceed current assets with worsening deficits year-on-year, raising substantial concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Severe Negative Net Assets: Net assets have deteriorated from -£24,655 in 2020 to -£77,864 in 2023, signaling accumulated losses eroding shareholder equity.
• Negative Working Capital: Net current liabilities of -£76,064 at the latest year-end highlight liquidity challenges, with current liabilities nearly 90 times the current assets.
• Minimal Share Capital and Single Director: Share capital of only £1.00 with a single director who is also the secretary concentrates control and may limit operational resilience or governance robustness.

3. Positive Indicators:

• Active Status with No Overdue Filings: The company remains active and up to date with statutory filings including accounts and confirmation statements, showing compliance discipline.
• Micro-Entity Filing with Exemption from Audit: Simplified reporting reflects small scale and potential low overhead in compliance costs.
• Consistent Industry Classification: Focus on IT services and software development aligns with a growing sector, offering operational opportunities if financial issues are resolved.

4. Due Diligence Notes:

• Investigate the nature and cause of the large and growing current liabilities, including creditor types and payment terms.
• Assess cash flow statements or bank records (not provided) to understand liquidity and operational cash generation or burn.
• Review director’s plans or business strategies to address financial deficits and return to solvency.
• Explore related party transactions or loans that may affect financial stability.
• Confirm no director disqualifications or regulatory actions against key management.