COLVIN WACKETT LTD

Executive Summary

Colvin Wackett Ltd is a small, recently established company showing encouraging improvement in liquidity and net asset position after prior working capital challenges. While currently able to meet short-term obligations, its modest scale and limited financial history warrant a cautious credit approach with conditions and ongoing monitoring. Approval is recommended with attention to cash flow consistency and operational profitability going forward.

COLVIN WACKETT LTD - Analysis Report

Company Number: 12822597

Analysis Date: 2025-07-20 15:00 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Colvin Wackett Ltd shows improving financial metrics after a period of negative working capital in 2023. The company is small and recently established (incorporated in 2020), with a micro-entity filing status, limiting the granularity of financial data. The current net assets and net current assets have improved significantly in the latest year, indicating better short-term liquidity and balance sheet stability. However, the small scale of operations, very limited fixed assets, and a history of working capital deficits suggest a cautious approach. Credit facilities could be approved with conditions such as monitoring cash flow closely and limiting exposure until the company demonstrates consistent profitability and stronger liquidity.

2. Financial Strength:
   The balance sheet shows net assets of £1,707 at 31 August 2024, up from £779 the previous year, reflecting an increase in retained earnings or capital injections. Fixed assets are minimal (£1,709), which is typical for a service-oriented business classified under SIC 74909 (Other professional, scientific and technical activities). Current assets have increased to £4,291, driven by improved cash or receivables, while current liabilities rose to £3,393. The resulting positive net current assets of £898 mark a recovery from the prior year’s £996 working capital deficit. The equity base remains low but positive, consistent with a micro-enterprise profile.

3. Cash Flow Assessment:
   The working capital position has turned positive, indicating improved liquidity to meet short-term obligations. Current liabilities are covered by current assets with a modest buffer. However, the absence of detailed cash flow statements limits assessment of operational cash generation. The company’s single employee (a director) and small scale suggest low overheads, which may help conserve cash. The increase in accruals and deferred income to £900 indicates some future income or liabilities to be managed. Overall, liquidity appears adequate but could be vulnerable to unexpected expenses or delays in receivable collections.

4. Monitoring Points:

• Cash flow statements on future filings to confirm operational cash generation.
• Receivables aging to ensure timely collections and avoid liquidity crunch.
• Profit and loss trends to confirm sustainable earnings beyond balance sheet improvements.
• Any increase in borrowing or creditor concentrations that could stress liquidity.
• Changes in director or ownership structure that may impact governance or financial controls.
• Timely filing of accounts and returns to maintain transparency and compliance.