WATERTON DEVELOPMENT LIMITED

Executive Summary

Waterton Development Limited exhibits ongoing financial weakness with negative net assets and poor liquidity, worsened by disposal of key investment property. The company’s inability to generate or hold current assets to cover liabilities leads to a high credit risk profile. Based on current financials, credit facilities are not recommended without substantial improvement or security.

WATERTON DEVELOPMENT LIMITED - Analysis Report

Company Number: 12893021

Analysis Date: 2025-07-29 18:47 UTC

1. Credit Opinion: DECLINE
   Waterton Development Limited shows persistent negative equity with shareholders' funds deteriorating from -£49,746 in 2020 to -£51,555 in 2023. The company has net current liabilities each year, indicating an ongoing working capital deficiency. The absence of investment property at 2023 year-end after disposal of the £455,937 asset in 2022 signals a reduction in asset backing. The company has no current debtors and relies heavily on other creditors, which raises concerns about its ability to meet short-term obligations without additional financing. Given the negative net assets, lack of liquidity, and no clear profitability or cash inflow evidence, the risk of credit exposure is high. Therefore, credit facilities should be declined unless significant mitigating circumstances or guarantees are provided.

2. Financial Strength:
   The balance sheet is weak, with negative net assets of £51,554 as at September 2023. The company disposed of its investment property asset during the year, removing a significant asset base. Current liabilities are £51,554 against no current assets, resulting in negative net current assets of the same amount. This situation indicates a lack of tangible collateral and an inability to cover short-term liabilities from current assets. The long-term financial position is poor, with no signs of improvement over the four years’ history available.

3. Cash Flow Assessment:
   No debtors recorded in the latest accounts, and no cash or liquid assets disclosed, indicating limited liquidity. The company’s working capital position is consistently negative, which suggests insufficient cash flow to meet immediate liabilities. The reliance on other creditors (£48,300 in 2023) as a primary source of financing may be unsustainable. Without positive operating cash flow or available funds, the company is unlikely to service new or existing debt obligations reliably.

4. Monitoring Points:

• Watch for any changes in asset base or injection of capital to improve net assets.
• Monitor current liabilities trends and creditor aging to identify liquidity strain.
• Track any new revenue generation or debtors appearing on balance sheet to improve working capital.
• Observe director and shareholder activity for potential financial support or restructuring initiatives.