WEBSTERS JOINERY DEVELOPMENTS LTD

Executive Summary

Websters Joinery Developments Ltd shows a high-risk profile due to significant and worsening liquidity and solvency deficits, with current liabilities far exceeding current assets and negative equity. While the company complies with filing requirements and is actively managed by a sole director, its small scale and financial position raise concerns over operational sustainability without further capital support or improved cash flow management.

WEBSTERS JOINERY DEVELOPMENTS LTD - Analysis Report

Company Number: SC744455

Analysis Date: 2025-07-29 12:24 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by persistent and increasing net current liabilities and negative shareholders’ funds. The financial position deteriorated from a £40k deficit in 2023 to a £59k deficit in 2024, indicating worsening financial stress in a very small operation.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£63,845) substantially exceed current assets (£4,482), resulting in a large working capital deficit (-£59,363), which raises immediate liquidity concerns and questions the company’s ability to meet short-term obligations.
• Consistent Shareholders’ Deficit: Shareholders’ funds are negative and have increased in magnitude year on year, reflecting accumulated losses or undercapitalization, which undermines the company’s solvency and financial stability.
• Small Scale and Single Director: With only one employee (the director), minimal operational scale, and no audit performed due to exemption, there is limited operational resilience and transparency, increasing execution and governance risk.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and management attention to statutory obligations.
• Established Industry Activity: The company operates in joinery installation (SIC 43320), a defined niche trade sector, which may offer steady demand if operationally sound.
• Director with Control: The sole director, Mr. Mark Stuart Webster, holds full control and is actively engaged, which can facilitate rapid decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the company’s current liabilities to assess immediate repayment pressures and any potential creditor negotiations or restructuring.
• Review cash flow forecasts and business plans to understand prospects for reversing the negative working capital trend and returning to profitability.
• Confirm if there are any contingent liabilities, related party transactions, or off-balance sheet commitments not reflected in the accounts.
• Assess the director’s capacity and plans for capital injection or external financing to support liquidity and solvency.
• Evaluate customer base and contract pipeline to gauge operational sustainability and revenue generation potential.