THE WRIGHT HEATING LTD

Executive Summary

The Wright Heating Ltd exhibits a high risk profile primarily due to worsening solvency and liquidity positions, reflected in negative net assets and increased current liabilities over a short period. While the company maintains compliance with filing requirements and benefits from experienced director oversight, the financial metrics suggest underlying cash flow and operational challenges that warrant thorough further investigation before investment consideration.

THE WRIGHT HEATING LTD - Analysis Report

Company Number: 13911313

Analysis Date: 2025-07-20 17:00 UTC

1. Risk Rating: HIGH

The company shows significant negative net assets and net current liabilities, indicating solvency challenges. Despite being active and compliant with filings, financial indicators raise concerns about its ability to meet obligations.

2. Key Concerns:

• Negative net assets of £9,871 as of 29 February 2024, deteriorating from a positive £95 the previous year.
• Net current liabilities worsened substantially to £11,073 from £1,508, suggesting liquidity stress.
• Reliance on director advances which have been fully repaid, indicating potential past cash flow support but no current buffer.

3. Positive Indicators:

• The company is up to date with both accounts and confirmation statement filings, showing regulatory compliance.
• Small business scale (micro entity) with limited fixed assets and low employee count, which may allow operational flexibility.
• Sole control by a single director with construction/building contractor experience, which could support operational continuity.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and increase in current liabilities over the last financial year.
• Review cash flow statements and creditor aging to assess short-term payment risks.
• Examine the nature and terms of any director loans or financial support historically provided.
• Confirm ongoing business operations and contracts given financial stress signals.
• Assess any contingent liabilities or off-balance sheet obligations not reflected in the accounts.