Company Number: 13614625

Analysis Date: 2025-07-20 17:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. YR Consultancy Ltd is a micro private limited company operating in management consultancy with a relatively short trading history (incorporated 2021). The latest financials show positive net current assets and net assets, indicating a modestly positive working capital position and equity base. However, the sharp increase in current liabilities from £71 (2023) to £5,860 (2024) raises concerns about a sudden rise in short-term obligations, which could stress liquidity. The company has not undergone audit but complies with micro-entity reporting exemptions. The directors have recent appointments, with control concentrated in two directors/shareholders. Given the small scale and early stage, credit should be extended with caution and monitoring, possibly with limits reflecting size and short operating history.

2. Financial Strength: The balance sheet shows low fixed assets (£1,097) and current assets (£7,385) as of 2024, with current liabilities increasing markedly to £5,860 from £71 the prior year. Net current assets remain positive at £1,525, but the increase in creditors due within one year is notable. Net assets declined from £2,273 in 2023 to £1,662 in 2024, reflecting some erosion of equity. The company has a very modest capital base appropriate for a micro entity. Accruals and deferred income doubled to £960, which may reflect deferred revenue or accrued expenses. Overall, the financial strength is limited but not weak, consistent with a small, early-stage consultancy.

3. Cash Flow Assessment: Current assets are mainly short term and likely include cash and trade receivables, but the significant jump in current liabilities could pressure liquidity. The positive net current assets imply some buffer to cover short-term debts, but the increase in creditors may indicate delayed payments or increased supplier credit. The company’s small size and limited asset base restrict its ability to withstand cash flow shocks. The working capital remains positive but should be closely monitored. No detailed cash flow statements are provided, so liquidity assessment is limited to balance sheet analysis.

4. Monitoring Points:

• Track the trend in current liabilities and creditors to ensure the company is not accumulating unsustainable short-term debt.
• Monitor net assets and equity to watch for further erosion.
• Review payment patterns and cash flow when available to confirm ongoing ability to service debts.
• Keep an eye on director changes or ownership concentration for governance risks.
• Watch upcoming filings to confirm continued compliance and financial performance.