WDF CONTRACTS LTD

Executive Summary

WDF Contracts Ltd shows a strong improvement in financial position with healthy working capital and net asset growth, supporting its ability to meet short-term obligations. The company’s micro scale and clear management structure reduce complexity and risk, making it a suitable candidate for credit approval. Ongoing monitoring should focus on liquidity trends and regulatory compliance to maintain creditworthiness.

WDF CONTRACTS LTD - Analysis Report

Company Number: 13127265

Analysis Date: 2025-07-20 12:14 UTC

1. Credit Opinion: APPROVE
   WDF Contracts Ltd demonstrates a positive financial trajectory with significant improvement in net current assets and net assets between 2023 and 2024. The company maintains a healthy working capital position and has no overdue filings or signs of financial distress. Its micro-entity status and small scale suggest limited exposure, but current financials show capacity to meet short-term obligations. The sole director appears stable and has majority control, indicating clear management oversight.

2. Financial Strength:
   The balance sheet as of 31 January 2024 shows total net assets of £77,280, up from £6,633 the prior year, indicating solid equity growth. Fixed assets are minimal (£3,974), consistent with the company’s micro classification and nature of business in civil engineering projects. The company’s current assets (£164,933) comfortably exceed current liabilities (£91,627), yielding net current assets (working capital) of £73,306. This strong liquidity buffer supports operational needs and short-term creditor payments.

3. Cash Flow Assessment:
   The company’s working capital position is robust with a substantial increase year-on-year, suggesting healthy cash inflows and effective management of payables and receivables. Although detailed cash flow statements are not provided, the sizable net current assets imply sufficient liquidity to service debt and fund ongoing operations without immediate refinancing risks. The micro-entity scale means cash flow volatility is likely low, but monitoring remains prudent.

4. Monitoring Points:

• Continued growth in net assets and working capital to confirm ongoing financial stability.
• Maintain timely filing of statutory accounts and confirmation statements to avoid regulatory penalties.
• Monitor any increases in current liabilities that could strain liquidity.
• Watch for diversification of contracts or client base to reduce concentration risk inherent in small operations.
• Director’s continued engagement and control, ensuring sound governance and risk management.