VICTORY WOODEN PUZZLES LTD

Executive Summary

Victory Wooden Puzzles Ltd exhibits significant solvency and liquidity risks as reflected in its negative net assets and high long-term liabilities. While it maintains good compliance with filings and an active trading status, the company’s financial position indicates potential difficulties in meeting obligations without further capital or operational improvements. Further detailed financial and operational due diligence is recommended to fully assess sustainability and risk exposure.

VICTORY WOODEN PUZZLES LTD - Analysis Report

Company Number: 13917612

Analysis Date: 2025-07-29 20:49 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities and negative net assets on its balance sheet, indicating a solvency risk. The liabilities due after more than one year greatly exceed assets, and negative net current assets suggest liquidity challenges.

2. Key Concerns:

• Negative Net Assets: The reported net assets are -£45,444 for the latest financial year, deteriorating from -£29,088 the prior year, which reflects ongoing accumulated losses or liabilities exceeding assets.
• High Long-Term Creditors: Creditors falling due after more than one year stand at £35,961, significantly higher than fixed and current assets combined, raising concerns about the company’s ability to meet long-term obligations.
• Negative Net Current Assets: Current liabilities exceed current assets by £11,809, indicating potential short-term liquidity issues.

3. Positive Indicators:

• Filing Compliance: The company is current with both its accounts and confirmation statement filings, suggesting regulatory compliance and good governance on reporting.
• Active Trading Status: The company is active and continues to trade, with a website presence and a clear business focus on manufacturing wooden puzzles.
• Stable Director and Ownership Structure: Ownership is concentrated with a single controlling shareholder who also serves as a director, potentially allowing for decisive management and strategic direction.

4. Due Diligence Notes:

• Examine the nature and terms of long-term creditors to understand whether these represent loans, trade payables, or other liabilities and assess repayment schedules and covenants.
• Review cash flow statements and profit & loss accounts (not provided) to determine operational cash generation and whether the company can service its debts from trading activities.
• Investigate any related party transactions or guarantees, especially given the sole significant shareholder resides abroad, to assess financial support or risks.
• Assess business model sustainability, including sales pipeline, market demand for wooden puzzles, and competitive position, as the company is in its early stages (incorporated 2022) and has only one employee.
• Clarify the nature of the negative equity—whether due to accumulated losses, write-downs, or other factors.

---