W&G CONTRACTING LTD

Executive Summary

W&G Contracting Ltd is a young, micro-sized construction installation company with a solid and improving financial position, marked by strong net assets and working capital. The company shows good financial stewardship and liquidity, making it a low-risk borrower capable of meeting debt obligations. Ongoing monitoring of financial trends and sector conditions is recommended to maintain credit confidence.

W&G CONTRACTING LTD - Analysis Report

Company Number: 14368555

Analysis Date: 2025-07-29 13:35 UTC

1. Credit Opinion: APPROVE
   W&G Contracting Ltd demonstrates a solid financial position for its size and age. The company is a micro-entity, active since 2022, with no overdue filings and no signs of financial distress. Both directors hold significant control and are local, suggesting stable management. The company’s net assets and working capital have improved year-over-year, indicating prudent financial management. There is no evidence of adverse director conduct or operational risks that would compromise creditworthiness. Given the positive balance sheet growth and current liabilities well covered by current assets, the company appears capable of meeting its obligations.

2. Financial Strength:
   As of the latest accounts dated 30 September 2024, the company reports total net assets of £84,800, up from £58,848 in the prior year. Fixed assets have increased modestly to £9,441. Current assets stand at £99,712, with current liabilities of £24,353, resulting in strong net current assets (working capital) of £75,359. This indicates a healthy balance sheet with a strong liquidity buffer relative to short-term payables. Shareholders’ funds mirror the net asset position, confirming no unusual or off-balance sheet liabilities.

3. Cash Flow Assessment:
   Though detailed cash flow statements are not provided, the significant positive working capital and steady increase in current assets suggest adequate liquidity to cover immediate liabilities. The company’s ability to maintain positive net current assets despite growing operations reflects good working capital management. Average employee numbers remain low (2), implying manageable overhead costs. There is no indication of cash flow stress or reliance on short-term debt.

4. Monitoring Points:

• Continued growth in net current assets and net assets to ensure liquidity remains robust.
• Maintain timely filing of accounts and confirmation statements to avoid penalties and maintain transparent credit risk.
• Monitor any changes in director or PSC status that might affect governance or control.
• Track industry conditions in the construction installation sector (SIC 43290), as downturns could impact cash flows.
• Watch for any significant increase in current liabilities or changes in fixed asset investment that might strain cash.