WHARFE VIEW NURSERIES LIMITED

Executive Summary

WHARFE VIEW NURSERIES LIMITED exhibits high financial risk due to a shift from positive equity to net liabilities and worsening liquidity indicators in its latest accounts. Although the company remains compliant with filings and maintains operational stability through a consistent workforce, significant solvency and cash flow concerns warrant further investigation before considering investment. Close scrutiny of creditor obligations and cash management practices is recommended to evaluate ongoing viability.

WHARFE VIEW NURSERIES LIMITED - Analysis Report

Company Number: 12943407

Analysis Date: 2025-07-20 14:20 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net current assets and net assets in the latest financial year, moving from positive £9,438 in 2022 to negative £9,050 in 2023. This indicates an inability to cover short-term liabilities with current assets and an overall negative equity position, raising material solvency concerns.

2. Key Concerns:

• Negative Net Current Assets: The current liabilities (£96,741) exceed current assets (£79,628) by £17,113 in 2023, signaling liquidity stress and potential cash flow difficulties.
• Negative Net Assets: The balance sheet shows net liabilities of £9,050 at 31 October 2023, which may indicate erosion of shareholder value and risk of insolvency.
• Shrinking Fixed Assets and Increasing Creditors: Fixed assets decreased from £10,346 to £8,063, while creditors rose sharply, suggesting operational or financial strain.

3. Positive Indicators:

• Consistent Employee Base: The company maintained an average of 4 employees over the past two years, indicating operational continuity.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, demonstrating compliance with regulatory requirements.
• Established Director: The sole director has been in position since incorporation with no adverse information noted.

4. Due Diligence Notes:

• Investigate reasons behind the sharp increase in current liabilities and negative working capital in 2023.
• Review cash flow statements and creditor aging schedules to assess short-term payment obligations and liquidity management.
• Examine if the company has any contingent liabilities or off-balance-sheet obligations impacting solvency.
• Assess the business model's viability in the wholesale flowers and plants sector given recent financial deterioration.
• Confirm whether there have been any director or shareholder loans, related party transactions, or restructuring efforts.