YIOTHADJ LIMITED

Executive Summary

YIOTHADJ LIMITED exhibits a weakening financial position with net assets collapsing to a nominal level and increased long-term liabilities, raising concerns about its ability to meet debt obligations. The company’s micro-entity size and limited asset base restrict its financial resilience. Credit approval is not recommended without significant improvement in financial stability and cash flow generation.

YIOTHADJ LIMITED - Analysis Report

Company Number: 13937867

Analysis Date: 2025-07-19 12:24 UTC

1. Credit Opinion: DECLINE
   YIOTHADJ LIMITED shows a significant deterioration in financial strength over the last two years. Net assets have plummeted from £1,507 in 2023 to just £100 in 2024, largely due to a sharp increase in liabilities falling due after more than one year (from £621 to £1,690). This suggests the company has taken on substantial long-term debt or obligations that are not currently supported by its asset base. The company’s working capital position also weakened, and the net current assets have dropped to £1,321, reflecting tighter liquidity. Given the limited financial buffer, this micro-entity’s capacity to service additional debt or meet credit terms on a reliable basis appears constrained. The single director’s background as an accountant provides some assurance on management competence, but the financial trajectory is negative.

2. Financial Strength:
   The balance sheet reveals a very thin equity base of £100, indicating the company is almost entirely leveraged. Fixed assets are minimal (£469), and the increase in non-current liabilities to £1,690 is a red flag, suggesting reliance on longer-term financing without a corresponding increase in assets or profitability. The decline from £1,507 net assets a year earlier to £100 is material and points to either losses or increased debt not offset by asset growth. The company remains small, with only 2 employees, limiting operational scale.

3. Cash Flow Assessment:
   Current assets of £1,321 against current liabilities of £0 (no data shown explicitly but net current assets match current assets, indicating no short-term creditors) suggests some liquidity is present. However, the overall financial position is weakened by large long-term liabilities, which may impose cash flow burdens in the future. The small size and micro-entity status mean cash flow is likely tight and vulnerable to fluctuations. Without detailed profit and loss data, cash flow sustainability is uncertain but appears fragile.

4. Monitoring Points:

• Track net asset position closely for further erosion or recovery.
• Monitor any changes in long-term liabilities and their servicing requirements.
• Watch for timely filing of accounts and confirmation statements to gauge management’s compliance and operational discipline.
• Review any profit and loss information when available to assess operational profitability and cash generation.
• Keep an eye on director’s actions and any changes in ownership/control or operational scale.