Company Number: 14212131

Analysis Date: 2025-07-20 17:28 UTC

1. Credit Opinion: DECLINE
   Yourell Enterprises Ltd presents a weak credit profile, primarily due to significant net liabilities of £19,910 as of July 2024 and a worsening equity position compared to the prior year. The company's current liabilities have increased markedly to £39,485, outstripping current assets of £18,376, indicating a potential liquidity strain despite a positive net current asset figure reported. The sizeable long-term creditors of £39,485, coupled with deferred tax liabilities, add to the financial burden. These factors raise concerns about the company's ability to meet debt obligations in a timely manner without external support or capital injection. Additionally, the company is relatively new (incorporated in 2022) with limited financial history and no audit, which increases risk uncertainty.

2. Financial Strength:
   The balance sheet reveals negative shareholders’ funds (£-19,910), reflecting accumulated losses or possibly undercapitalization. Fixed assets have decreased slightly, and there is evidence of amortisation and depreciation, but tangible and intangible assets are modest in scale (£16,790 total). The large increase in current liabilities and long-term creditors compared to previous periods indicates reliance on creditor financing or loans. The company’s intangible asset (goodwill) amortisation and tangible asset depreciation policies appear standard, but no significant asset base exists to support borrowing capacity. Overall, the financial structure is weak with limited equity cushion and high leverage.

3. Cash Flow Assessment:
   Cash at bank improved to £9,624 from £2,939 year-on-year, which is a positive indicator for short-term liquidity. Debtors also increased to £8,752, which supports cash flow potential but may reflect credit risk if collection is delayed. However, current liabilities more than double to £39,485, creating a risk of liquidity mismatch. Net current assets remain positive at £6,036, but this is insufficient to offset the large creditor balances falling due after more than one year. The company’s working capital management needs close monitoring to ensure ongoing operational liquidity and ability to service short-term debts.

4. Monitoring Points:

• Watch the evolution of net liabilities and shareholder funds to assess if losses continue or if capital restructuring occurs.
• Monitor creditor balances, especially long-term liabilities, and debt repayment schedules.
• Review cash flow statements when available to confirm stable or improving operational cash generation.
• Track debtor ageing and cash conversion cycle to prevent working capital strain.
• Follow any changes in directors or ownership that may impact governance and financial strategy.