YOURS LINK LIMITED

Executive Summary

YOURS LINK LIMITED exhibits improving liquidity with growing current assets but carries notable long-term liabilities resulting in negative net equity. The company’s ability to service debt depends on sustaining cash flow and profitability improvements. Conditional credit approval is advised with focus on monitoring leverage, liquidity, and operational performance closely.

YOURS LINK LIMITED - Analysis Report

Company Number: 13802143

Analysis Date: 2025-07-29 18:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   YOURS LINK LIMITED is a micro-entity operating since December 2021 in real estate management and business support services. The company shows positive net current assets but a negative overall net asset position due to long-term liabilities exceeding total assets. This indicates a leveraged balance sheet which poses moderate risk. However, the company is current with filings and has a recently appointed director controlling significant ownership, suggesting active management. Conditional approval is recommended with ongoing monitoring of debt servicing and profitability improvements.

2. Financial Strength:

• Fixed assets are minimal (£5,368), reflecting low capital intensity.
• Current assets increased substantially from £28k in 2022 to £323k in 2023, indicating improved liquidity or working capital management.
• Current liabilities also rose markedly to £261k from £5.5k, driven by short-term debt or payables.
• Net current assets remain positive at £61k, which supports short-term obligations coverage.
• However, long-term creditors of £132k push total liabilities above total assets, resulting in negative net assets of £65k.
• Shareholders’ funds are negative, reflecting accumulated losses or funding through debt rather than equity.

3. Cash Flow Assessment:

• The significant increase in current assets vs. liabilities suggests improved liquidity and short-term cash availability.
• Positive net current assets imply the company can meet short-term liabilities without distress.
• The negative net asset position and sizeable long-term creditors highlight reliance on external financing; cash flow from operations should be closely reviewed to ensure sustainable debt servicing.
• Absence of audit and micro-entity status limit detailed insight into cash flow from operations and profitability.

4. Monitoring Points:

• Track working capital trends and ensure net current assets remain positive.
• Monitor long-term debt levels and repayment schedules to avoid solvency issues.
• Review profitability and cash flow generation in subsequent periods to support balance sheet repair.
• Observe director and ownership changes that might impact governance or strategic direction.
• Confirm timely filing of accounts and statutory returns to maintain compliance.