YIF DESIGN LTD

Executive Summary

YIF DESIGN LTD operates as a micro-entity in architectural activities showing limited turnover growth but consistent zero net assets and marginal losses, raising significant solvency and liquidity concerns. Despite compliant filings and active status, the lack of current assets and equity suggests financial fragility and operational constraints. Further due diligence on cash flows and accounting completeness is recommended before considering investment exposure.

YIF DESIGN LTD - Analysis Report

Company Number: 12891404

Analysis Date: 2025-07-29 14:44 UTC

1. Risk Rating: HIGH
   Justification: The company shows zero net assets and zero working capital in the most recent financial year, alongside consistent losses and minimal turnover. The absence of current assets and liabilities suggests extremely limited operational scale or dormant trading status despite reported turnover. This raises concerns about solvency and liquidity.

2. Key Concerns:

• Zero Net Assets and Shareholders Funds: The balance sheet reports zero total net assets and zero shareholders’ funds for the last three years, indicating no retained earnings or equity buffer to absorb losses or support operations.
• Negative Profitability: Although turnover has modestly increased (£67k in 2024), the company reported a small loss (£283) in 2024 and negligible profit in 2023, suggesting operational inefficiency or marginal business viability.
• Lack of Current Assets and Liabilities: Reporting zero current assets and liabilities is unusual for an active architectural services business, indicating potential issues with cash flow, receivables, or payables. This may also reflect incomplete or minimal accounting entries, raising concerns on financial transparency.

3. Positive Indicators:

• Timely Filing and Compliance: The company is active and has filed its accounts and confirmation statements on time, demonstrating regulatory compliance and no immediate governance or administrative red flags.
• Gradual Increase in Turnover: Turnover has increased from £49k in 2023 to £67k in 2024, showing some growth in business activity.
• Sole Employee: The company reports an average of one employee, consistent with a small or micro business model, potentially allowing tight cost control.

4. Due Diligence Notes:

• Verify the nature and completeness of reported zero current assets and liabilities. Investigate if these figures reflect true operational status or incomplete accounting entries.
• Assess cash flow statements or bank account activity (if available) to confirm liquidity position and operational cash management.
• Investigate the business model and contracts generating turnover to understand sustainability and profitability outlook.
• Confirm absence of related party transactions or off-balance sheet liabilities that could impact financial stability.
• Review director background and any related party involvement, especially given the sole director and minimal equity position.