FAULKNER-WILLCOCKS LIMITED

Executive Summary

Faulkner-Willcocks Limited shows compliance with regulatory filings and positive equity but has experienced a recent deterioration in liquidity with net current liabilities reported in its latest accounts. The increase in fixed assets is a positive sign, yet limited financial disclosure constrains a full operational assessment. Further investigation into cash flows and asset quality is recommended to better understand solvency and business sustainability.

FAULKNER-WILLCOCKS LIMITED - Analysis Report

Company Number: 13288371

Analysis Date: 2025-07-20 14:30 UTC

1. Risk Rating: MEDIUM

The company is a micro-entity operating in the holiday accommodation sector with a short trading history since incorporation in 2021. While it currently remains active and compliant with filing requirements, the most recent financial year shows a deterioration in liquidity, evidenced by negative net current assets, which raises concerns about short-term solvency.

2. Key Concerns:

• Negative Working Capital in Latest Year: The 2025 accounts show current liabilities (£5,286) exceeding current assets (£2,413), resulting in net current liabilities of £2,873. This liquidity strain could impair the company’s ability to meet short-term obligations.
• Declining Net Assets: Net assets fell from £21,897 in 2024 to £17,495 in 2025, indicating a reduction in equity and potentially profitability or asset value.
• Limited Financial Transparency: The company prepared accounts under micro-entity provisions and elected not to include a profit and loss account, limiting insight into operational performance and cash flow dynamics.

3. Positive Indicators:

• Compliant with Filing Obligations: No overdue accounts or confirmation statements, demonstrating good governance and regulatory adherence.
• Increasing Fixed Assets: Fixed assets more than doubled from £9,468 in 2024 to £22,043 in 2025, potentially reflecting investment in property or equipment to support operations.
• Stable Shareholders’ Funds: Although reduced, shareholders’ funds remain positive and substantial relative to the scale of operations (£17,495), providing some buffer against losses.

4. Due Diligence Notes:

• Investigate the nature and liquidity of current assets to assess if the company can realistically convert these to cash to cover liabilities.
• Review cash flow statements or management accounts (if available) to understand the causes of the working capital decline and operational cash generation.
• Clarify the composition and valuation of fixed assets to verify their usability as security or operational capacity.
• Assess the company's business model and contracts in the holiday accommodation sector to evaluate sustainability, especially post-pandemic market conditions.
• Confirm whether there are any contingent liabilities or off-balance sheet risks not captured in the micro-entity accounts.