W&C PROPERTIES LTD

Executive Summary

W&C PROPERTIES LTD demonstrates significant solvency and liquidity risks, with negative net assets and high creditor balances exceeding total assets. While statutory filings are current and directors provide ongoing support assurances, the company's financial structure raises concerns about its ability to meet obligations without restructuring or additional capital. Further due diligence on creditor terms, cash flows, and directors’ backing is recommended to clarify operational stability and going concern viability.

W&C PROPERTIES LTD - Analysis Report

Company Number: 13019479

Analysis Date: 2025-07-20 14:19 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by negative net assets (£-67,234) and a large long-term creditor balance (£225,035) exceeding total assets. The persistent decline in net assets over the last 2 years and negative working capital highlight financial stress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Deficit: The company’s net liabilities position means it owes more than it owns, which is a critical red flag for solvency.
• High Long-Term Creditors: Creditors due after more than one year remain steady at £225,035, representing a substantial liability relative to the company’s asset base.
• Declining Liquidity: Although current liabilities slightly decreased, current assets remain very low (£8,788), resulting in a large negative net current assets figure (£-91,712), which implies difficulty in meeting short-term obligations.

3. Positive Indicators:

• Stable Fixed Asset Base: The company holds investment property valued at £249,855, which appears stable over multiple years and forms the bulk of asset value.
• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, no overdue filings or penalties noted, indicating good governance on statutory obligations.
• Going Concern Statement Supported by Directors: Directors commit to providing ongoing support, which may mitigate immediate risk of insolvency.

4. Due Diligence Notes:

• Investigate Nature and Terms of Long-Term Creditors: Understanding the creditor composition, repayment schedules, and covenant terms is critical to assess refinancing or restructuring risks.
• Review Cash Flow and Income Generation: Limited turnover and absence of detailed profit and loss data constrain liquidity assessment. Verify rental income streams and operating expenses to understand operational sustainability.
• Assess Directors’ Support and Financial Backing: Since going concern relies on directors’ support, confirm the extent and reliability of this backing and any contingent liabilities or guarantees.
• Consider Valuation and Liquidity of Investment Property: Although reported at a stable value, verify independent market valuation and marketability of the property asset to assess true recoverable amount.