Company Number: 14002993

Analysis Date: 2025-07-20 18:16 UTC

1. Credit Opinion: DECLINE

W B EVENTS SUPPLY LIMITED shows signs of financial distress that make extending new credit or increasing facilities risky. The company’s net current liabilities have increased significantly from £(3,052) in 2023 to £(7,954) in 2024 (current assets £11,963 vs current liabilities £19,917), indicating a working capital deficit and strained liquidity. Shareholders’ funds have turned negative, deteriorating from £3,715 in 2023 to £(7,954) in 2024, suggesting accumulated losses and insolvency concerns. The company is very young (incorporated in 2022) and categorized as micro, with minimal operational scale and zero employees currently, reducing its resilience.

2. Financial Strength:

The balance sheet reveals weakening financial strength. Current liabilities have increased over sixfold in one year, while current assets have only modestly improved. Negative equity indicates the company’s liabilities exceed its assets, undermining capital structure integrity. No fixed assets or long-term assets are reported, limiting collateral value. The director is the sole shareholder with full control, implying concentrated ownership but no evident external capital support.

3. Cash Flow Assessment:

The company exhibits poor liquidity metrics. Negative net current assets imply insufficient short-term resources to meet obligations as they fall due. The absence of employees and limited current assets further suggest constrained operational cash flows. Given the increase in creditors and lack of reported profits or retained earnings, the company may rely heavily on owner funding or external support to sustain operations. Without positive cash flow generation or working capital improvements, repayment capacity is doubtful.

4. Monitoring Points:

• Track quarterly cash flow statements and updated balance sheets for liquidity trends.
• Monitor creditor aging and any payment delays to suppliers or HMRC.
• Review any new financing arrangements or capital injections by the director.
• Assess operational developments that could generate positive cash flows.
• Watch for any changes in company status or director conduct records.