YOLO MOBILE DEVELOPMENT AND CONSULTANCY LTD
Executive Summary
YOLO MOBILE DEVELOPMENT AND CONSULTANCY LTD is a micro-entity in its first year of operation, showing very limited financial activity and a minimal asset base of £100. The company is structurally sound in terms of filing compliance but exhibits symptoms typical of a startup with no operating revenue or employees. Strengthening capital, stabilizing governance, and establishing clear revenue streams are critical next steps to improve its financial health.
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This analysis is opinion only and should not be interpreted as financial advice.
YOLO MOBILE DEVELOPMENT AND CONSULTANCY LTD - Analysis Report
Financial Health Assessment Report for YOLO MOBILE DEVELOPMENT AND CONSULTANCY LTD
1. Financial Health Score: D
Explanation:
As a newly incorporated micro-entity with minimal financial data and net assets of only £100, the company is at an embryonic stage of its financial life. The extremely limited asset base and absence of revenue or profit information indicate fragile financial health. This grade reflects the early phase of business development with significant uncertainties and limited operating history.
2. Key Vital Signs
Metric | Value | Interpretation |
---|---|---|
Company Age | 1 year (since 2023-04) | Very young company, early growth phase. |
Account Category | Micro | Simplified reporting applicable; limited financial disclosure. |
Net Assets | £100 | Very low net asset base; minimal capital invested or accumulated earnings. |
Current Assets | £100 | All assets are current; no fixed or long-term assets recorded. |
Net Current Assets (Working Capital) | £100 | Positive but very small working capital; limited liquidity buffer. |
Employee Count | 0 | No employees including directors; possibly no active operations or outsourcing. |
Profit and Loss Account | Not filed | No profit/loss information available, limiting profitability assessment. |
Directors & Control | Multiple directors appointed/resigned; control concentrated among key individuals | Management turnover may indicate restructuring or instability. |
Filing Status | Up to date | Good compliance with statutory filing deadlines; no overdue filings. |
3. Diagnosis: Financial Condition and Business Health
This company exhibits the symptoms of a startup in its infancy with very limited financial activity. The balance sheet shows a mere £100 in net assets, indicating minimal investment or operational scale so far. The lack of employees and absence of profit and loss data suggest the business has not yet commenced significant trading or revenue generation.
The turnover and cash flow "vital signs" are unavailable, which is typical for a micro-entity in its first financial period but represents a lack of a healthy cash flow cycle essential for sustaining operations and growth. The presence of multiple director changes within the first year can be a sign of organizational adjustments or internal restructuring, which might be normal in early-stage ventures but could also indicate early governance challenges.
Control is concentrated among a few individuals with over 75% shareholding and voting rights, which simplifies decision-making but poses governance concentration risks. The company’s micro status and exemption from audit requirements imply limited financial scrutiny, increasing the importance of internal controls and management diligence.
4. Recommendations: Actions to Improve Financial Wellness
Establish Revenue Streams and Monitor Cash Flow:
Develop and document clear revenue generation plans. Monitor cash inflows and outflows closely to ensure a healthy cash flow cycle, which is critical for survival and growth.Build Capital Base:
Consider capital injections or securing financing to strengthen net assets and working capital. A stronger capital base provides a buffer against early-stage financial shocks.Operational Scaling:
Evaluate the need to hire staff or formalize outsourcing arrangements to build operational capacity if trading is to commence or expand.Governance Stability:
Stabilize the board of directors to ensure consistent leadership and strategic direction. Clear roles and responsibilities will reduce risks associated with management turnover.Financial Reporting and Transparency:
Although exempt from audit, consider preparing a basic profit and loss account and cash flow statements internally. This will aid management decision-making and attract potential investors or partners.Strategic Planning:
Develop a detailed business plan with financial projections to guide growth and attract investment. Early planning helps anticipate financial challenges and opportunities.
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