STREETYARD LTD
Company number 08207343 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Assessment for Streetyard Ltd
1. Financial Health Score: C (Fair)
Streetyard Ltd shows signs of a stable but fragile financial constitution. The company is solvent with a healthy equity buffer, but a recent drop in cash, a surge in debtors, and a pending proposal to strike off raise caution. Think of it as a patient with normal vital signs but an underlying chronic condition that needs monitoring.
2. Key Vital Signs
| Vital Sign | Current Reading (2025) | Prior Year (2024) | Interpretation |
|---|---|---|---|
| Net Current Assets (Working Capital) | £18,772 | £13,274 | Healthy – positive and growing, indicating ability to meet short-term obligations. |
| Cash & Bank | £6,623 | £14,533 | Concerning drop – cash halved, reducing liquidity buffer. |
| Debtors (money owed to the company) | £22,973 | £11,503 | Rapid increase – almost doubled, may signal slow payment or aggressive revenue recognition. |
| Total Liabilities | £10,824 | £12,762 | Low debt – liabilities modest and falling, no bank loans or overdrafts (except minor prior year). |
| Shareholders’ Funds (Equity) | £18,772 | £13,274 | Strong growth – equity up 41%, retained earnings accumulating. |
| Company Status | Active – Proposal to Strike off | Active | Critical warning – the company is in the process of being removed from the register. |
Additional Observations: - No fixed assets (fully depreciated) – the business is asset-light, typical for IT consultancy. - Two employees (including director) – micro operation. - Accounts are up to date and filed on time – compliance is good. - No audit required (small company exemption).
3. Diagnosis
Primary Condition: Solvent but Dormant Trajectory
Streetyard Ltd has a clean bill of health from a balance sheet perspective: positive net assets, low leverage, and retained earnings growth. However, the financial data reveals several symptoms that suggest the business is winding down or operating at a very low level:
- Cash flow weakness: Cash at bank fell by 54% year-on-year, while debtors ballooned. This is like a patient whose blood volume is dropping while fluid is pooling in the tissues – a sign that cash conversion is sluggish.
- No revenue or profit disclosure: Without a profit and loss account, we cannot assess sales trends, margins, or operating efficiency. The increase in equity (profit and loss reserves) from £13,272 to £18,770 implies a profit of about £5,498, but we don't know if this is sustainable.
- Strike-off proposal: The company’s status is the most serious symptom. A proposal to strike off typically means the company has ceased trading or the director intends to dissolve it. This overshadows the otherwise reasonable financial metrics.
Underlying Causes: - The business appears to be a single-director IT consultancy with minimal activity. The high debtor balance may represent intercompany loans (note "Other debtors" of £20,973) rather than trade receivables from clients – this could be funds owed by related parties. - The company has multiple Persons with Significant Control (PSC) entries, including corporate entities (Chillman Group Ltd, Streetyard Group Ltd). This suggests a group structure where Streetyard Ltd may be a dormant or holding entity within a larger group.
Overall Assessment: The company is technically solvent but shows signs of being a zombie – alive on paper but not actively trading. The strike-off proposal is the equivalent of a "do not resuscitate" order.
4. Prognosis
If the strike-off proceeds, the company will be dissolved. If the director withdraws the proposal and resumes active trading, the financial position is strong enough to support modest operations. However, the cash decline and debtor build-up could become acute if not addressed. Without new revenue, the equity will erode through ongoing costs.
Outlook: Guarded – the company's future depends entirely on the director's intentions. Financially, it could continue for a few more years at current levels, but the strike-off suggests closure is imminent.
5. Recommendations
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Clarify the strike-off status: The director should either formally withdraw the proposal if the company intends to continue trading, or proceed with dissolution in an orderly manner (pay all creditors, distribute remaining assets).
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Improve cash conversion: If trading continues, reduce debtor days aggressively. The £20,973 in "other debtors" should be collected or written off if irrecoverable. Consider factoring or tighter credit control.
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Provide full profit and loss disclosure: To diagnose the true health of the business, the director should prepare a full set of management accounts showing revenue, cost of sales, and overheads. This will reveal whether the company is genuinely profitable or just surviving on prior reserves.
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Review group structure: If Streetyard Ltd is a passive holding company, consider merging it with the parent entity to reduce administrative costs and filing burdens.
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Monitor cash reserves: Even a small consultancy needs a cash buffer of at least 3 months’ operating expenses. With £6,623 and two employees, that buffer may be too thin.
Executive Summary:
Streetyard Ltd is financially solvent with low debt and growing equity, but its status as "Active – Proposal to Strike off" signals that the company is likely ceasing operations. Cash has dropped sharply and debtors have ballooned, indicating poor cash flow management. Without intervention, dissolution is probable; if the company is to continue, immediate action on liquidity and clarity of purpose is needed.