WALNUT TREE SHOOT LIMITED

Executive Summary

Walnut Tree Shoot Limited exhibits a high-risk financial profile due to a shift from positive net assets to net liabilities and significant negative working capital as of the latest filing. While the company remains compliant with statutory filings and operates as a small private entity, the current financial position raises material concerns regarding solvency and liquidity. Further investigation into the causes of financial deterioration and operational sustainability is strongly recommended before investment consideration.

WALNUT TREE SHOOT LIMITED - Analysis Report

Company Number: 13259156

Analysis Date: 2025-07-20 16:38 UTC

1. Risk Rating: HIGH
   Justification: The company’s latest filed accounts for the year ending 31 March 2024 reveal a net liabilities position of £2,004, a significant deterioration from a positive net asset position of £1,209 in the prior year. The balance sheet shows current liabilities exceeding current assets by £1,713, indicating negative working capital and potential liquidity stress. This negative net asset position raises serious concerns about solvency.

2. Key Concerns:

• Solvency Risk: The company has transitioned from positive net assets (£1,209 in 2023) to net liabilities (-£2,004 in 2024), suggesting an erosion of equity and possible insolvency risk.
• Liquidity Concerns: Current liabilities (£2,478) exceed current assets (£765) by a wide margin, implying difficulty in meeting short-term obligations.
• Operational Stability: The company is a micro-entity with only two employees and minimal fixed assets (£259), operating in a niche SIC code (1700 - Hunting, trapping and related services), which may limit scale and diversification.

3. Positive Indicators:

• The company is compliant with filing deadlines, with both accounts and confirmation statements up to date and not overdue.
• Directors have maintained continuity since incorporation in 2021, with no indication of disqualifications or governance issues.
• The business structure as a private limited company limits shareholder liability to the nominal share capital (£100), protecting personal assets of directors.

4. Due Diligence Notes:

• Investigate reasons for sharp decline in net assets and working capital deterioration between 2023 and 2024, including any unusual or one-off losses or write-downs not apparent from summary data.
• Review cash flow statements and management accounts to assess ongoing liquidity and ability to meet short-term obligations.
• Confirm absence of contingent liabilities or off-balance sheet obligations that might exacerbate financial stress.
• Evaluate the business model’s viability given the niche market, minimal asset base, and small employee count.
• Consider director interviews or background checks for operational insights and potential plans to restore financial health.