WELLFIELD PARK LIMITED

Executive Summary

Wellfield Park Limited is a micro-entity in the building development sector with a negative net asset position but improving short-term liquidity. Compliance with filing requirements is current, and ownership is concentrated under a single entity, potentially providing support. Key risks remain around solvency, operational sustainability, and the nature of long-term liabilities, warranting further detailed review.

WELLFIELD PARK LIMITED - Analysis Report

Company Number: 14554297

Analysis Date: 2025-07-29 16:37 UTC

1. Risk Rating: MEDIUM
   The company shows a negative net asset position, indicating it is currently insolvent on a balance sheet basis. However, the net current assets are positive and growing, suggesting short-term liquidity is maintained. Being a recently incorporated, micro-entity with no employees also introduces operational risks.

2. Key Concerns:

• Negative shareholders' funds (£-2,776 as of 2024) implying insolvency and potential solvency risk.
• Significant long-term liabilities exceeding current assets, which could affect future financial stability.
• Lack of employees and limited operational history raise questions on business sustainability and capacity to generate revenue.

3. Positive Indicators:

• The company is up to date with all statutory filings and accounts, showing regulatory compliance.
• Net current assets have increased substantially from £88,700 in 2023 to £222,387 in 2024, indicating improving liquidity.
• Ownership is consolidated under a single controlling entity (Element Housing Limited), which may provide strategic support and funding.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities due after more than one year (£225,163) to assess repayment risk and covenants.
• Clarify the company’s revenue model and pipeline given zero employees and early stage of development in building projects.
• Review director backgrounds for any adverse records and confirm strategic plans for addressing negative net assets.
• Assess relationship and financial support from Element Housing Limited as the 75-100% shareholder.