WERRINGTONS KETTERING LIMITED

Executive Summary

Werringtons Kettering Limited shows a solid and improving financial position with strong net assets and liquidity for a micro-entity. The company’s low leverage and clean compliance record support a favorable credit decision. Continued monitoring of cash flow and profitability is advised due to recent reductions in current assets and the nature of its industry.

WERRINGTONS KETTERING LIMITED - Analysis Report

Company Number: 14458240

Analysis Date: 2025-07-29 13:03 UTC

1. Credit Opinion: APPROVE
   Werringtons Kettering Limited demonstrates a positive and improving financial position with increasing net assets and net current assets over the last two years. The company has no overdue filings, indicating good administrative discipline. The director is also the majority shareholder, suggesting aligned interests in maintaining financial stability. The micro-entity status and small employee base limit operational complexity, reducing risk. The current asset coverage comfortably exceeds current liabilities, supporting short-term debt servicing.

2. Financial Strength:
   The company’s net assets increased significantly from £5,661 in 2022 to £61,619 in 2024, reflecting retained earnings or capital injections. Net current assets improved markedly to £50,199 in 2024 from £5,661 in 2022, indicating stronger liquidity. The balance sheet shows only current assets and no long-term liabilities, typical for a micro company in the food service sector. Shareholders’ funds mirror net assets, reflecting equity financing with minimal external debt, which reduces financial risk.

3. Cash Flow Assessment:
   Current assets (£26,736) exceed current liabilities (£23,463) as of 2024 year-end, ensuring adequate liquidity. However, a drop in current assets from £71,630 in 2023 to £26,736 in 2024 may warrant monitoring to ensure working capital remains sufficient. The company’s working capital position is strong but fluctuating; ongoing cash flow management is critical, especially given the nature of the take-away food business, which can be sensitive to operational cycles and seasonal variations.

4. Monitoring Points:

• Track quarterly cash flow to confirm liquidity stability, especially given the recent decrease in current assets.
• Monitor profitability trends and retained earnings growth, as profit and loss data is not yet filed.
• Observe any changes in director/ownership structure that could affect governance or financial control.
• Watch for any increase in liabilities or overdraft usage that could pressure short-term liquidity.
• Keep an eye on economic factors impacting the take-away food sector, such as supply costs and consumer demand.