WALTER OPERATIONS UK LIMITED

Executive Summary

Walter Operations UK Limited is facing significant financial distress, evidenced by a substantial net liabilities position and cessation of operations. The company’s balance sheet impairment and negative working capital reflect poor financial health and limited ability to meet liabilities. Credit exposure is high risk and not recommended for approval without substantial restructuring or guarantees.

WALTER OPERATIONS UK LIMITED - Analysis Report

Company Number: 14016083

Analysis Date: 2025-07-29 13:14 UTC

1. Credit Opinion: DECLINE
   Walter Operations UK Limited presents significant credit risk. The company is reported to have ceased operations during the year and accounts are prepared on a non-going concern basis, indicating serious financial distress. The net liabilities position of approximately £2.65 million and continued erosion of asset value, including substantial impairment of fixed assets, further undermine its capacity to meet debt obligations. Ongoing negative working capital and reliance on group undertakings for funding reflect limited operational cash generation and heightened dependency risk.

2. Financial Strength:
   The balance sheet reveals severe financial weakness. Fixed assets have been impaired from £2.17 million to £20,000, effectively writing down nearly all tangible asset value. Current liabilities exceed current assets by £2.67 million, resulting in a negative working capital position. The company has net liabilities of £2.65 million, driven by accumulated losses and creditor balances, including over £2 million owed to group companies. The depletion of equity and provisions reversed (dilapidation provision) do not improve the financial position. This indicates a company technically insolvent on a balance sheet basis.

3. Cash Flow Assessment:
   Cash at bank was nil at year-end, and the company shows a net current liabilities deficit, suggesting liquidity constraints. Debtors within one year have increased to £451k, but these are insufficient to cover short-term creditors of over £3.1 million. The removal of cash balances from £103k in the prior year and increased creditors highlight cash flow pressures. The absence of operating cash flow, cessation of operations, and heavy reliance on intercompany funding denote poor cash flow generation and impaired ability to service external liabilities.

4. Monitoring Points:

• Confirmation of the company’s operational status and any restructuring or insolvency proceedings.
• Intercompany balances and funding arrangements with Patriarche Associes and Patriarche Associates UK Limited.
• Any future impairment or write-offs of assets or further provisioning.
• Cash flow developments and creditor negotiations, particularly with trade creditors and tax authorities.
• Legal or regulatory actions related to cessation of operations or lease reassignment.