Company Number: 13970901

Analysis Date: 2025-07-29 19:35 UTC

1. Risk Rating: MEDIUM
   Despite being a relatively new company incorporated in 2022, WARDROBES BY DESIGN LTD shows some early-stage financial strain with negative net current assets for the past three years and minimal net assets. The company is solvent but faces liquidity pressure due to current liabilities exceeding current assets. However, there are no overdue filings or regulatory concerns at this time.

2. Key Concerns:

• Negative Net Current Assets: The company has consistently reported net current liabilities (e.g., -£1,688 at 31 March 2024), indicating potential short-term liquidity challenges in meeting obligations as they fall due.
• Low Net Asset Base: Shareholders’ funds are minimal (£429 as of 2024) and have declined from the prior year, which may limit financial flexibility and resilience to business shocks.
• Growing Current Liabilities: Current liabilities more than doubled from £19,804 in 2023 to £42,137 in 2024, outpacing growth in current assets, which could strain cash flow if not managed prudently.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, demonstrating compliance with Companies House requirements and good governance practices.
• Increasing Debtors and Cash Balances: Debtors increased significantly from £11,880 to £29,971, and cash at bank more than doubled from £3,451 to £8,028, suggesting potential growth in sales and cash inflows.
• Stable Management: Both directors are experienced joiners and have maintained consistent involvement since incorporation, which may contribute to operational continuity.

4. Due Diligence Notes:

• Investigate the nature and collectability of trade debtors to assess the quality of receivables and the timing of cash inflows.
• Review the composition and aging of current liabilities, especially the large increase in other creditors, to understand payment terms and creditor relationships.
• Obtain management accounts or cash flow forecasts to evaluate ongoing liquidity and ability to fund operations without additional capital injection.
• Confirm the existence and adequacy of provisions for liabilities to assess potential off-balance sheet risks.
• Assess the company’s business model sustainability and market position given the manufacturing SIC code and limited asset base.