DRON & WRIGHT LLP

Executive Summary

Dron & Wright LLP maintains a positive net asset base and sufficient working capital to meet near-term obligations despite a marked reduction in size and financial scale in the latest year. The firm’s liquidity position appears adequate, but the contraction in business activity and employee count warrants cautious credit extension with ongoing monitoring of financial performance and operational stability.

DRON & WRIGHT LLP - Analysis Report

Company Number: OC443244

Analysis Date: 2025-07-20 14:11 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Dron & Wright LLP is a recently formed limited liability partnership with accounts filed up to March 2024. The firm demonstrates a positive net asset position and healthy working capital, indicating an ability to meet short-term obligations. However, the sharp decline in current assets and net assets from 2023 to 2024 and a reduction in headcount from 7 to 2 employees suggest operational scaling back or restructuring that warrants caution. Credit approval is recommended subject to monitoring of ongoing financial stability and business activity.

2. Financial Strength:

• Net Assets have decreased significantly from £447,659 in 2023 to £140,253 in 2024, a reduction of approximately 69%.
• Current assets fell from £659,929 to £148,668, driven largely by a drop in debtors (£365,192 to £9,596) and cash balances (£284,737 to £139,072).
• Current liabilities also decreased from £218,050 to £8,415, improving net current assets proportionally.
• The firm has no tangible fixed assets as of 2024, indicating minimal investment in long-term assets.
• Overall, the balance sheet remains positive with net current assets exceeding current liabilities by a significant margin, but the decline in scale may impact future earning capacity.

3. Cash Flow Assessment:

• Cash holdings of £139,072 at year-end provide liquidity buffer for operations.
• Working capital is strong at £140,253, indicating comfortable coverage of short-term liabilities.
• The reduction in debtors and creditors suggests a contraction in business volume or improved collection/payment efficiency.
• Absence of fixed assets and lower employee numbers may reduce cash outflows but also impact revenue generation.
• No indication of overdrafts or short-term borrowing, which supports liquidity confidence.

4. Monitoring Points:

• Track monthly cash flow and debtor days to ensure continued liquidity and timely collections.
• Monitor trade creditor balances and payment practices to avoid supplier distress.
• Observe any further changes in employee numbers or operational scale that could affect revenue.
• Review future accounts for recovery or further decline in net assets and turnover.
• Assess management commentary or market conditions affecting the firm’s sector to anticipate risks.