W S AND R LTD

Executive Summary

W S AND R LTD maintains a stable asset base with positive net worth but faces liquidity constraints and significant long-term debt obligations. While the company is currently solvent, the tight working capital and high liabilities suggest a need for improved cash flow management and debt restructuring to ensure sustainable financial health. Proactive financial monitoring and strategic capital management will enhance resilience and growth potential.

W S AND R LTD - Analysis Report

Company Number: SC688868

Analysis Date: 2025-07-29 20:43 UTC

Financial Health Assessment for W S AND R LTD

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1. Financial Health Score: C+

Explanation:
W S AND R LTD exhibits moderate financial stability with a solid asset base but some concerns around liquidity and long-term liabilities. The company has positive net assets and equity growth; however, working capital is tight, and long-term creditor obligations are significant relative to current assets. This suggests the business is stable but with symptoms of financial strain that require monitoring and management.

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2. Key Vital Signs

Metric	2025 Value (£)	Interpretation
Fixed Assets	86,050	Healthy and stable asset base, indicating investment in long-term resources.
Current Assets	6,280	Low liquid assets, indicating limited cash or receivables to cover short-term obligations.
Current Liabilities	4,651	Short-term debts relatively low compared to current assets, positive sign for immediate liquidity.
Net Current Assets	1,629	Positive but low working capital, a sign of tight liquidity—“borderline healthy cash flow”.
Long-term Liabilities	55,775	Significant long-term debt compared to assets, potential “chronic financial burden”.
Net Assets (Equity)	31,904	Positive net worth, showing the company’s residual value after liabilities—“heart of the business”.
Share Capital	100	Minimal share capital, typical for micro-entities, limited buffer for absorbing losses.
Employee Count	0	No employees reported, possibly a sole trader-like structure or minimal operational complexity.

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3. Diagnosis

W S AND R LTD’s financial “vital signs” reveal a company with stable fixed assets and positive equity growth over the past years, which indicates consistent retention of value or profitability. However, the “symptoms” of distress include very low current assets relative to significant long-term liabilities, indicating potential challenges in meeting ongoing debt obligations without refinancing or additional capital injection.

The low working capital suggests that the business operates with tight liquidity, similar to a patient whose blood pressure is stable but borderline low—there is no immediate crisis, but vigilance is required to avoid a liquidity “crisis.” The large long-term debt signals a chronic condition that could restrict growth or operational flexibility if not addressed.

The absence of employees means the cost base is likely low, reducing cash outflow risks, but also implies limited capacity for expansion or operational scalability.

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4. Recommendations

• Improve Liquidity: Enhance current assets through better cash management, accelerating receivables, or building cash reserves to provide a healthier liquidity buffer.
• Debt Restructuring: Consider negotiating with creditors to extend repayment terms or refinance long-term liabilities to reduce financial strain and improve solvency ratios.
• Capital Injection: Explore options to increase equity capital, either through additional shareholder investment or external funding to strengthen the company’s financial “immune system.”
• Operational Review: Assess the business model for opportunities to increase revenue or reduce costs, which will improve net asset accumulation and cash flow health.
• Regular Monitoring: Implement monthly financial reviews focusing on liquidity metrics to detect early signs of distress and act swiftly.
• Contingency Planning: Develop a plan for potential cash flow shortages, including access to credit lines or emergency funding.

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