Company Number: 13139086

Analysis Date: 2025-07-20 15:50 UTC

Financial Health Assessment for YMJ-Z LTD

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1. Financial Health Score: D

Explanation:
YMJ-Z LTD shows signs of financial distress based on its latest micro-entity accounts. The company has consistently reported negative net current assets and net liabilities over the last three years, indicating a precarious liquidity position. This score reflects the urgent need for remedial actions to restore financial stability.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Current Assets	3,334	Low level of liquid assets available to cover short-term obligations.
Current Liabilities	7,169	Short-term debts exceed current assets by over double, a symptom of liquidity strain.
Net Current Assets	-3,835	Negative working capital indicates an inability to meet short-term obligations from available assets.
Total Assets less CL	-3,834	Overall asset value after short-term debts is negative, a critical warning sign.
Net Assets (Equity)	-3,834	Negative net worth; liabilities exceed assets indicating insolvency risk.
Share Capital	1	Minimal equity buffer, providing little cushion against financial shocks.
Number of Employees	0	No employees, suggesting a very small or dormant operational scale.

Interpretation:
Much like a patient showing symptoms of "circulatory failure," YMJ-Z LTD’s financial system is strained, with liabilities overshadowing assets. The chronic negative working capital is a strong symptom of cash flow issues, risking inability to meet creditor demands timely.

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3. Diagnosis

The financial "symptoms" indicate YMJ-Z LTD is currently in a fragile state. Despite being active and incorporated recently (2021), the company’s accounts reveal persistent negative net current assets and net liabilities for three consecutive years (2022-2024), reflecting ongoing liquidity and solvency challenges.

The lack of employees and minimal share capital further restrict operational flexibility and financial resilience. The company’s retail sale activity in telecommunications equipment suggests a capital-light model, but the financials do not support sustainable operations without immediate intervention.

The absence of audit requirements (micro-entity exemption) means some detailed financial risks may be unreported, but the headline figures alone are sufficient to diagnose financial distress.

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4. Recommendations

1. Improve Cash Flow Management:

   • Prioritize collection of receivables and negotiate extended payment terms with creditors.
   • Explore short-term financing options (overdrafts, loans) carefully to bridge liquidity gaps.

2. Cost Rationalization:

   • With zero employees, ensure overheads are minimal; review all fixed costs for potential reduction or deferral.

3. Capital Injection:

   • Consider increasing equity capital to bolster net assets and provide a cushion against liabilities.
   • Engage with existing shareholders or external investors for fresh capital infusion.

4. Operational Review:

   • Assess the business model viability given current financial constraints.
   • Explore possible restructuring or pivoting strategies to improve revenue streams.

5. Professional Advice:

   • Engage a financial advisor or insolvency practitioner promptly to avoid worsening financial health.
   • Ensure compliance with Companies House filing requirements to maintain corporate good standing.

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Summary

YMJ-Z LTD is currently exhibiting clear symptoms of financial distress, characterized by negative working capital and net liabilities consistently over recent years. Without immediate action to improve liquidity, reduce costs, and strengthen equity, the company risks insolvency. The prognosis hinges on swift intervention to restore a healthy cash flow and operational viability.