WAKEFIELD WEBSITE DESIGN LIMITED

Executive Summary

Wakefield Website Design Limited is a very small and young IT service company with a modest but positive financial position. While it currently demonstrates adequate liquidity and net assets, its small scale and some recent declines in net asset value warrant conditional credit approval with active monitoring. Continued prudent financial management and operational growth are essential for improving creditworthiness.

WAKEFIELD WEBSITE DESIGN LIMITED - Analysis Report

Company Number: 13921233

Analysis Date: 2025-07-29 12:09 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Wakefield Website Design Limited shows a small but positive net asset position with moderate working capital, indicating the ability to meet short-term obligations. However, the company is very young (incorporated in 2022), operates in a competitive IT service sector, and has a very small scale of operations (single employee). The slight decline in net assets from £3,458 in 2023 to £2,711 in 2025 suggests some volatility. Credit approval should be conditional on continued monitoring of liquidity and profitability trends, as well as ensuring the directors maintain prudent cash management.

2. Financial Strength:
   The balance sheet reveals modest fixed assets (£959) and current assets (£14,867) against current liabilities of £13,315 as of March 2025. The company has positive net current assets (£1,752) and total net assets of £2,711, supported fully by shareholder funds. The shareholder, Mr. Craig Davies, holds 75-100% control, which suggests a concentrated ownership but also potentially strong oversight. The small scale (micro-entity) and limited equity base constrain financial flexibility.

3. Cash Flow Assessment:
   Current assets primarily comprise cash and receivables sufficient to cover current liabilities, indicating adequate liquidity in the short term. The positive net current assets demonstrate working capital adequacy for routine trading operations. However, the decline in current assets from £18,320 in 2023 to £14,867 in 2025, coupled with fluctuating liabilities, signals some variability in cash flow. The company’s single-employee structure reduces fixed overhead, but cash flow resilience will depend on steady client engagements and receivables management.

4. Monitoring Points:

• Track net current assets and liquidity ratios quarterly to preempt any cash flow constraints.
• Monitor profitability and retained earnings to ensure the company moves towards sustainable growth and equity strengthening.
• Review director conduct and related party transactions given the concentrated control to ensure no undue financial risk.
• Watch industry trends in IT service activities for potential impact on revenue streams.
• Confirm timely filing of accounts and returns to avoid regulatory penalties.