DYLAN WILSON-WRIGHT LIMITED

Executive Summary

Dylan Wilson-Wright Limited is currently experiencing financial strain, marked by negative working capital and eroded equity, indicating liquidity challenges and accumulated losses. Immediate actions to improve cash flow, reduce costs, and strengthen capital are essential to stabilize the company’s financial health and ensure ongoing viability.

DYLAN WILSON-WRIGHT LIMITED - Analysis Report

Company Number: 13951271

Analysis Date: 2025-07-20 15:17 UTC

Financial Health Assessment: Dylan Wilson-Wright Limited

---

1. Financial Health Score: D

Explanation:
The company is currently showing signs of financial distress with negative net assets and working capital. The grade D reflects significant liquidity challenges and erosion of equity, indicating the business is under financial strain but still operational. Immediate attention is required to avoid worsening conditions.

---

2. Key Vital Signs

Metric	31 March 2024	Interpretation
Current Assets	£220	Very low level of liquid assets to cover short-term debts
Current Liabilities	£4,056	High short-term obligations compared to current assets
Net Current Assets (Working Capital)	-£3,836	Negative working capital; symptoms of liquidity pressure
Net Assets (Shareholders’ Funds)	-£5,927	Negative equity; indicates accumulated losses or capital erosion
Accruals and Deferred Income	£2,091	Significant deferred income suggests timing differences in revenue recognition

Additional Context:

• The company is classified as a micro-entity with minimal employees (1), which limits the scale but also the financial flexibility.
• The financial position has deteriorated markedly from the previous year (2023), when net assets were positive at £361 and net current assets were £1,315.
• The director and sole owner holds full control, which may facilitate quicker decision-making but also concentrates financial risk.

---

3. Diagnosis

The financial "vital signs" reveal several symptoms of distress:

• Liquidity Crisis: The very low current assets (£220) compared to current liabilities (£4,056) means the company lacks sufficient liquid resources to meet immediate obligations. This is akin to a patient with dangerously low blood pressure—immediate intervention is needed to stabilize.
• Negative Working Capital: This negative figure (-£3,836) suggests the company may struggle to pay suppliers, staff, or short-term creditors without fresh cash inflows or financing.
• Eroded Equity: The net assets have turned negative (-£5,927), indicating accumulated losses or capital withdrawals exceeding asset base. This is a warning sign of financial "organ failure" where the company’s net worth is completely depleted.
• Rising Deferred Income: The increase in accruals and deferred income could indicate revenue recognition issues or cash flow timing mismatches that require careful management.

Overall, the company is in a fragile state financially. While still active and not in liquidation, the financial statements suggest it is operating with a compromised safety margin. Without corrective action, insolvency risk increases.

---

4. Recommendations

To improve financial wellness and restore stability, the company should consider the following actions:

• Cash Flow Management: Prioritize improving liquidity by accelerating receivables collection, negotiating extended payment terms with suppliers, or seeking short-term financing. "Healthy cash flow" is essential to avoid default on immediate obligations.
• Capital Injection: Given the negative equity, an injection of fresh capital (equity or loans) would strengthen the balance sheet and provide breathing room for operations.
• Cost Controls: Review operating expenses and overheads to reduce cash burn. Even small efficiencies can help preserve cash in a micro-entity setting.
• Revenue Strategy: Explore opportunities to increase sales or diversify income streams. The deferred income balance suggests timing issues that need addressing to improve cash inflows.
• Professional Advice: Engage with a financial advisor or insolvency practitioner proactively to explore restructuring options and avoid formal insolvency proceedings.
• Monitoring: Establish regular financial monitoring (monthly cash flow forecasts, liquidity ratios) to detect "symptoms" early and adjust course promptly.

---