Company Number: 14528414

Analysis Date: 2025-07-20 14:29 UTC

1. Credit Opinion: DECLINE
   YUMMY GRILL DG LTD demonstrates weak financial health with net liabilities of £22,409 and significant net current liabilities of £21,689. The company’s balance sheet shows negative shareholders' funds and insufficient current assets to cover current liabilities, indicating poor liquidity and high short-term financial risk. Given the company is recently incorporated (Dec 2022) and already exhibits negative net assets within its first full financial period, there is considerable concern over its ability to service debt or meet commercial obligations without additional capital injection or operational turnaround.

2. Financial Strength:
   The balance sheet is fragile: current assets stand at only £6,650 against current liabilities of £28,339, resulting in negative working capital of £21,689. Total net liabilities of £22,409 reflect accumulated losses and no equity buffer. The company falls into the micro entity category but is showing early signs of financial distress. With no fixed assets reported, the company lacks tangible collateral to support external financing. The negative capital and reserves position suggests accumulated losses or unpaid capital calls.

3. Cash Flow Assessment:
   The company’s liquidity position is weak, with current liabilities more than four times the current assets. This implies a cash flow mismatch and potential difficulty in meeting short-term obligations. The absence of audit and limited financial disclosures restrain deeper cash flow analysis, but the negative net current assets clearly highlight a working capital deficit. Without improved cash inflows or capital injection, ongoing operations may be jeopardized.

4. Monitoring Points:

• Turnaround in working capital and liquidity ratios in next filings
• Improvement in net asset position and equity base
• Timely filing of future accounts and confirmation statements
• Any director or shareholder capital contributions to offset losses
• Operational cash flow trends and profitability indicators
• Creditors aging and payment behavior to suppliers