YILDIZ PIPE FITTING SERVICES LIMITED

Executive Summary

YILDIZ PIPE FITTING SERVICES LIMITED demonstrates very weak financial health with minimal net assets, increased short-term liabilities, and declining cash reserves. The company’s limited operational scale and liquidity constraints present a high credit risk. Credit facilities are not recommended unless significant improvements in financial strength and cash flow visibility are evidenced.

YILDIZ PIPE FITTING SERVICES LIMITED - Analysis Report

Company Number: 13598513

Analysis Date: 2025-07-20 14:50 UTC

1. Credit Opinion: DECLINE
   YILDIZ PIPE FITTING SERVICES LIMITED exhibits very weak financial strength and limited operational scale. The company reported minimal net assets (£262) and working capital (£262) as of 31 March 2024, a significant decline from £1,069 net assets the prior year. Current liabilities have more than doubled to £2,754, while cash reserves dropped by 45% to £1,318. The company has no employees and negligible fixed assets, suggesting limited capacity to generate sustainable revenues or service external debt. The director is the sole controller and shareholder, which concentrates risk. Absent evidence of strong cash flow or a robust business model, the company appears unable to support new or increased credit facilities at this stage.

2. Financial Strength:
   The balance sheet is very thin with net assets just above £200, showing erosion from prior year levels. Current liabilities have increased markedly, primarily due to a rise in tax and social security obligations, which now represent the bulk of short-term debts. The company holds no fixed assets and limited current assets, mainly debtors and cash. The small equity base and minimal retained earnings reduce financial resilience. Overall, the company is financially fragile and vulnerable to any operational or market shocks.

3. Cash Flow Assessment:
   Cash at bank is low (£1,318) and declining, while debtors have only recently appeared and amount to £1,698. This modest working capital (£262) provides very limited liquidity buffer. The absence of employees implies minimal operating expenses but also limited revenue generation capacity. The increasing tax and social security creditors suggest possible cash flow timing or tax payment difficulties. The company’s ability to meet short-term obligations without external funding appears constrained.

4. Monitoring Points:

• Monitor cash balances and debtor collection closely to ensure liquidity does not deteriorate further.
• Watch tax and social security creditor levels for signs of payment delays or arrears.
• Track net asset trends and working capital improvements or declines in upcoming accounts.
• Review any changes in operational scale or business contracts that could enhance cash flows.
• Consider director’s financial support or external funding arrangements, if any, to bolster capital.