WICKER GATE LTD

Executive Summary

WICKER GATE LTD shows a typical early-stage financial profile with positive equity but a negative working capital indicating liquidity pressures. The company is financially stable but must focus on cash flow management to avoid future distress. Implementing disciplined cash management and cost controls will support healthier growth and operational resilience.

WICKER GATE LTD - Analysis Report

Company Number: 14629630

Analysis Date: 2025-07-29 16:26 UTC

Financial Health Assessment Report for WICKER GATE LTD (as of 28 February 2024)

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1. Financial Health Score: C (Fair)

Explanation:
WICKER GATE LTD, a micro-entity active for just over one year, shows a modest financial position. The company has positive net assets but exhibits a working capital deficit and limited fixed assets. These factors suggest a company in its early stages with some liquidity pressures but no immediate distress signals. The score reflects a fair condition with room for improvement in cash flow management and operational scaling.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	6,546	Small investment in long-term assets, typical for a young company, indicating limited capital base.
Current Assets	14,814	Cash, receivables, and short-term assets providing liquidity, but not sufficient to cover short-term obligations.
Current Liabilities	16,685	Obligations due within one year exceed current assets, indicating a working capital deficit.
Net Current Assets (Working Capital)	-1,871	Negative working capital ("symptom of liquidity stress") could signal potential cash flow challenges.
Total Net Assets (Equity)	4,675	Positive equity reflects shareholder investment and residual value after liabilities.
Average Number of Employees	2	Small team size consistent with micro-entity status, limiting operational complexity.

Interpretation:
The company shows a "healthy" equity base for its size, but the negative net current assets highlight potential short-term liquidity constraints. This can be seen as a symptom of the company managing its early growth phase, where timing of cash inflows and outflows may not yet be fully optimized. The fixed asset base is modest, consistent with a business likely relying more on human capital and consultancy services rather than physical assets.

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3. Diagnosis

WICKER GATE LTD is in early development with a financial profile typical of a startup micro-entity. The company's balance sheet does not show signs of critical distress such as insolvency, but the negative working capital is a warning sign. This "symptom" can arise from delayed client payments, upfront costs exceeding receipts, or tight cash management.

The company's equity base, fully funded by shareholder capital, provides a cushion to absorb initial operational losses or delays in cash flow. The lack of long-term liabilities is a positive sign, indicating no significant debt burden yet.

Overall, the financial "pulse" suggests a business in the initial growth and establishment phase, with manageable but present liquidity challenges. The single director and sole significant controller structure supports focused governance but also concentrates operational risk.

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4. Recommendations

To improve the financial wellness and strengthen the company's "heartbeats" (cash flow and liquidity), the following steps are advised:

1. Improve Working Capital Management:

   • Negotiate better payment terms with clients to accelerate receivables.
   • Delay or stretch payables where possible without damaging supplier relationships.
   • Monitor cash flow forecasts regularly to anticipate shortfalls and plan accordingly.

2. Build Cash Reserves:

   • Maintain a minimum cash buffer to cover at least 1-2 months of operating expenses, reducing liquidity risk.

3. Cost Control and Budgeting:

   • Review operating expenses carefully to ensure all costs contribute to growth or efficiency.
   • Avoid unnecessary fixed asset purchases until cash flow stabilizes.

4. Consider External Financing Prudently:

   • If growth opportunities require investment, consider low-cost loans or equity injections, but avoid over-leveraging.

5. Prepare for Scaling:

   • As the company grows, gradually improve systems for invoicing, collections, and financial reporting to detect issues early.

6. Continue Regulatory Compliance:

   • Maintain timely filings to avoid penalties and preserve corporate reputation.

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