Company Number: 14673727

Analysis Date: 2025-07-29 14:44 UTC

1. Credit Opinion: APPROVE – Wabconsult Ltd demonstrates a solid financial position for a micro-entity in its first year of trading with a positive net asset base and strong working capital. The company is active, compliant with filing deadlines, and controlled by an experienced managing director with full ownership and control. While the company is newly incorporated and small in scale, there is no indication of credit risk or financial distress at this stage. Given the current financials and business profile, the company appears capable of meeting typical trade or loan obligations.

2. Financial Strength: The balance sheet as of 29 February 2024 shows total net assets of £28,234, supported by net current assets of £28,795. Fixed assets are minimal (£609), consistent with a service-oriented consultancy business. Capital and reserves equal net assets, indicating no external borrowings or long-term liabilities. The low level of accruals/deferred income (£1,170) suggests limited off-balance sheet obligations. Overall, the company’s financial position is stable with a clean capital structure and no debt, which mitigates insolvency risk.

3. Cash Flow Assessment: Current assets of £47,176 against current liabilities of £18,381 provide a current ratio of approximately 2.57, indicating strong short-term liquidity. The positive net working capital reflects good management of receivables and payables, essential for meeting immediate financial commitments. Cash flows are not explicitly detailed but the strong current asset base relative to liabilities suggests healthy operational cash flows or sufficient cash reserves. The micro-sized operation with one employee likely entails low fixed overheads, aiding cash flow stability.

4. Monitoring Points:

• Since the company is newly incorporated, continued compliance with filing requirements and timely submission of accounts and confirmation statements should be monitored.
• Monitor revenue growth and profitability trends in subsequent accounts to assess business trajectory and debt servicing capacity.
• Review any increase in liabilities or introduction of borrowings which may impact financial flexibility.
• Observe director changes or any material related-party transactions, given the concentrated ownership and control.
• Keep an eye on industry conditions affecting management consultancy services, particularly economic cycles impacting client demand.