GOODING WOODING LTD

Executive Summary

Gooding Wooding Ltd is a micro-entity showing gradual improvement in liquidity and equity but remains financially fragile with limited asset backing. The company has demonstrated compliance and sound management practices so far, supporting a conditional credit approval. Lending should be cautiously sized with ongoing monitoring of working capital and cash flow to mitigate risk.

GOODING WOODING LTD - Analysis Report

Company Number: 12770333

Analysis Date: 2025-07-29 19:11 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Gooding Wooding Ltd demonstrates modest but improving financial health, with net current assets rising from £311 in 2023 to £774 in 2024, indicating some strengthening liquidity. The business remains very small (micro entity) with limited fixed assets and minimal share capital (£2), which restricts its financial buffer. The company has filed accounts and confirmation statements on time, showing compliance and management diligence. However, the low absolute asset base and thin equity margin suggest limited capacity to absorb shocks or support significant borrowing. Credit should be extended cautiously, with conditions on maintaining working capital levels and monitoring cash flows closely.

2. Financial Strength:
   The balance sheet is positive but very modest in scale. Fixed assets are negligible (£222), and the company relies primarily on current assets (£15,006) to cover current liabilities (£14,232). Shareholders’ funds increased from £311 (2023) to £996 (2024), reflecting retained earnings or capital injections, but remain very small relative to potential credit exposure. The business’s net asset position is stable but thin, limiting resilience to adverse trading conditions or unexpected expenses.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by £774, indicating a positive working capital position and short-term liquidity. However, the margin is narrow, and the increase in current liabilities year-on-year (from £7,858 to £14,232) signals rising obligations that need to be managed carefully. The company’s average employee count is one, suggesting low overheads but also limited operational scale to generate substantial cash flows. Close attention to debtor collections and inventory turnover will be essential to maintain liquidity.

4. Monitoring Points:

• Working capital trends: Ensure net current assets remain positive and ideally improve.
• Timely filings: Continue timely submission of accounts and confirmation statements to avoid regulatory risk.
• Cash flow volatility: Monitor monthly cash flow statements for any strain.
• Business growth trajectory: Watch for any significant expansion or contraction in assets or liabilities.
• Management continuity: Stability of directors and PSCs to ensure sound governance.