WE CAN HELP YOU LTD

Executive Summary

We Can Help You Ltd has demonstrated financial recovery from a prior deficit to a positive equity position but continues to exhibit liquidity challenges and dependence on related party funding. Conditional credit approval is recommended, contingent on ongoing monitoring of cash flow and working capital management. Enhanced scrutiny of intercompany balances and operational performance will be critical to ensuring repayment capacity.

WE CAN HELP YOU LTD - Analysis Report

Company Number: 13761880

Analysis Date: 2025-07-29 20:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   We Can Help You Ltd is an active private limited company operating in IT consultancy. The company shows a mixed financial profile with a significant recovery from a negative net asset position in 2023 to a positive net asset position in 2024. However, the current year-end balance sheet reveals net current liabilities (£40,707) and a reliance on amounts owed to group undertakings (£43,210) within current liabilities, indicating liquidity pressure. The director’s assertion of going concern is noted but should be supported by cash flow forecasts and intercompany arrangements. Credit approval is recommended on a conditional basis, subject to ongoing monitoring of working capital and confirmation of support from related parties.

2. Financial Strength
   The company’s financial strength has improved materially compared to the prior year. Shareholders’ funds have increased substantially from a negative £47,923 in 2023 to a positive £249,979 in 2024, reflecting capital injections or retained earnings. Fixed assets grew to £101,167, mostly intangible, suggesting investment in development or intellectual property. However, the working capital deficit of £40,707 and the concentration of liabilities owed to related parties present a risk. The company’s balance sheet no longer shows a deficit in total assets less current liabilities (£60,460 positive), but liquidity constraints remain a concern.

3. Cash Flow Assessment
   Cash at bank reduced sharply from £83,700 to £13,660 year-on-year, highlighting cash consumption or reinvestment. Debtors fully disappeared (£0 in 2024 vs £60,000 in 2023), possibly due to write-offs or internal balances being cleared. Current liabilities surged due to amounts owed to group undertakings (£43,210), which may be intercompany loans or trade payables. This reliance on related party funding suggests limited external liquidity. Working capital management is weak, with a negative net current asset position, which could impair the company’s ability to meet short-term obligations without continued support.

4. Monitoring Points

• Liquidity and cash flow trends: Confirm ongoing cash generation and availability of related party funding.
• Working capital improvements: Monitor reduction in current liabilities and efforts to collect or manage payables.
• Related party transactions: Review terms and sustainability of amounts owed to/from group companies.
• Profitability and operational cash flow: Seek evidence of improving underlying business performance to reduce reliance on capital injections or loans.
• Director stability and governance: Watch for any changes in management or control that could affect credit risk.