YOULEARNT LTD

Executive Summary

YOULEARNT LTD is currently in a weak financial position with net liabilities and no liquid assets to cover short-term debts, resulting in high credit risk. The company’s lack of operational scale and financial history, combined with negative equity, limits its capacity to service credit facilities. Without significant improvement in cash flow and capitalization, credit approval is not recommended at this time.

YOULEARNT LTD - Analysis Report

Company Number: 14121196

Analysis Date: 2025-07-29 18:26 UTC

1. Credit Opinion: DECLINE
   YOULEARNT LTD shows a concerning financial position as at 31 May 2024 with net liabilities of £14,248, indicating that current liabilities exceed assets. The company does not hold any fixed or current assets and has no recorded cash or receivables, which severely limits its ability to service debt or meet obligations. Given the negative equity and absence of tangible working capital, the risk of default is high. Moreover, the company is very young (incorporated in 2022) and classified as a micro-entity with minimal financial history or scale to demonstrate operational resilience or growth trajectory. The apparent negative net current assets and net liabilities reflect poor financial health and weak liquidity.

2. Financial Strength:
   Balance sheet analysis reveals a deteriorated financial position from a neutral stance in 2023 (net assets of £0) to a net liability position of £14,248 in 2024. No fixed or current assets are recorded, and there is an absence of cash or receivables, suggesting minimal or no working capital resources. Shareholders’ funds have declined into negative territory, indicating erosion of equity capital. The company’s micro-entity status limits disclosure, but the available data suggests financial fragility with no buffer against adverse events.

3. Cash Flow Assessment:
   The micro-entity accounts disclose no cash or current assets as at the latest year-end. Current liabilities total £14,248, implying immediate funding requirements that cannot be met from on-hand liquid resources. The company’s working capital deficit and negative net current assets reveal poor liquidity and an inability to cover short-term obligations without external financing or capital injection. This is a significant red flag for credit risk, as the company lacks the cash flow strength to service debt or operational expenses reliably.

4. Monitoring Points:

• Monitor any future capital injections or equity increases that could restore positive net assets and liquidity.
• Track turnover and profitability trends once accounts for subsequent years are filed to assess operational improvements.
• Review any changes in current liabilities levels and the company’s ability to reduce short-term debt.
• Observe director and shareholder movements or involvement of related parties for potential financial support.
• Keep watch on filing timeliness and completeness of financial disclosures to identify any governance or operational issues.