WIAPROPERTIES LTD

Executive Summary

WIAPROPERTIES LTD maintains substantial fixed assets but suffers from negative working capital and minimal equity, indicating financial fragility despite asset strength. Conditional credit approval is warranted, contingent on assurances regarding liquidity management and debt servicing capability. Ongoing monitoring of cash flows, debt terms, and equity growth is essential to mitigate credit risk.

WIAPROPERTIES LTD - Analysis Report

Company Number: 13492259

Analysis Date: 2025-07-29 20:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   WIAPROPERTIES LTD shows a stable asset base primarily consisting of fixed assets (£633,650), likely property holdings given their real estate management SIC codes. However, there is a material current liability of £401,500 due after more than one year, matched closely by fixed assets. Net current assets are negative, indicating working capital pressure. The company’s net assets and shareholders’ funds are minimal (£5,075), reflecting very thin equity and limited financial cushion. Given these factors, credit approval should be conditional on monitoring liquidity and verifying the nature and terms of the long-term liabilities, ensuring they are manageable and serviced timely.

2. Financial Strength:
   The balance sheet shows substantial fixed assets with stable carrying value over the last three years, indicating no impairment. Current assets have improved slightly but remain low (£21,802 in 2024). Current liabilities within one year are significant (£248,877), causing net current liabilities of £227,075, which is a liquidity concern. The company’s equity is negligible, implying high leverage. The consistency in fixed assets and liabilities suggests no recent capital injection or asset acquisition, possibly indicating a static operational scale. Overall, the company is asset-rich but equity-weak and reliant on external financing.

3. Cash Flow Assessment:
   Current assets (likely cash and receivables) are insufficient to cover short-term liabilities, creating a working capital deficit. This signals potential liquidity risk in meeting immediate obligations unless the company has access to additional financing or steady cash inflows from operations. The micro-entity size suggests limited operational complexity, but the negative working capital and minimal equity require close scrutiny of cash flow statements or management forecasts. The company’s ability to generate positive operational cash flows or refinance debt is critical to avoid liquidity distress.

4. Monitoring Points:

• Liquidity ratios and cash flow from operations: Watch short-term liquidity closely to ensure the company can meet current liabilities.
• Debt servicing and covenant compliance: Confirm terms of the £401,500 long-term liabilities and monitor for timely interest and principal repayments.
• Equity and reserves growth: Look for improvement in net assets or retention of earnings to strengthen financial resilience.
• Operational performance and revenue trends: Track income streams supporting cash flow given the company’s real estate management focus.
• Director and shareholder conduct: No adverse records noted; continue monitoring governance and control changes.