WALTERS CAPITAL GROUP LIMITED

Executive Summary

Walters Capital Group Limited is a recently incorporated holding company with very limited equity and heavily reliant on unsecured, interest-free intercompany loans for funding. Its financial position shows significant liquidity risk and lack of independent cash flow, making it unsuitable for external credit facilities at this time. Continuous monitoring of its intercompany funding and operational progress is essential before reconsidering credit exposure.

WALTERS CAPITAL GROUP LIMITED - Analysis Report

Company Number: 14762010

Analysis Date: 2025-07-19 12:14 UTC

1. Credit Opinion: DECLINE
   Walters Capital Group Limited shows a very weak financial profile with net current liabilities of £680,000 against negligible shareholders’ funds of £20. The company’s total assets less current liabilities is just £20, indicating an extremely thin equity buffer and poor liquidity. Its sole asset is an investment in subsidiaries valued at £680,020, matched by an equivalent amount of short-term liabilities owed to group undertakings. The absence of income or profit data and the reliance on intra-group loans raises concerns about the company’s ability to meet external debt obligations independently. Given these factors and its recent incorporation in 2023 with minimal trading history, the company is not currently creditworthy for external lending without substantial guarantees or support.

2. Financial Strength:
   The balance sheet reflects a highly leveraged and illiquid position. Fixed assets consist solely of investments in subsidiaries (£680,020). Current liabilities of £680,000 consist entirely of amounts due to group undertakings, interest-free and repayable on demand, which creates significant refinancing risk. The net current assets are negative by £680,000, and shareholders’ funds are nominal at £20, reflecting minimal capital injection and no retained earnings or reserves. This structure implies the company is essentially a holding entity funded by intercompany debt, lacking operational cash flow or financial strength.

3. Cash Flow Assessment:
   There is no direct cash or working capital available, and the company’s operations appear dependent on related party financing. The absence of cash or debtor balances and the large current liabilities due to group undertakings suggest the company does not generate independent cash flow to service debts. Loans from related parties are unsecured, interest-free, and repayable on demand, which could cause liquidity strain if the group funding terms change. The company's liquidity profile is very weak, and it would have limited ability to absorb shocks or meet external creditor demands.

4. Monitoring Points:

• Monitor any changes in the level and terms of intercompany loans, especially if these become repayable or interest-bearing.
• Track filings for any material changes in financial position or capital structure, including any impairment of subsidiary investments.
• Watch for the commencement of independent trading activities and generation of operational cash flows to reduce reliance on related party funding.
• Review director and shareholder actions for capital injections or restructuring to improve liquidity and equity base.
• Keep abreast of timely submission of accounts and confirmation statements to detect any compliance or operational issues.