WIGAN SCIENTIFIC LTD

Executive Summary

WIGAN SCIENTIFIC LTD is financially stable with positive net assets and strong working capital, demonstrating sound liquidity and growth for a micro-entity. However, the unusual presentation of high current liabilities requires further investigation to ensure no hidden liquidity risks. With prudent management and enhanced governance, the company is well-positioned for continued financial health.

WIGAN SCIENTIFIC LTD - Analysis Report

Company Number: 13886470

Analysis Date: 2025-07-29 14:06 UTC

Financial Health Assessment for WIGAN SCIENTIFIC LTD

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1. Financial Health Score: B

Explanation:
WIGAN SCIENTIFIC LTD demonstrates a solid financial foundation for a micro-entity in its early years, with consistently positive net assets and working capital. However, the company's current liabilities significantly exceed current assets, which is atypical and suggests nuances in how liabilities are reported or structured. The firm shows no fixed assets, and the net asset base is relatively small but growing. Overall, the score reflects healthy financial stability with caution due to the unusual liabilities presentation.

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2. Key Vital Signs

Metric	Latest (FY 2025)	Interpretation
Current Assets	£6,981	Modest short-term resources; typical for a micro company but lower than prior year (£10,668).
Current Liabilities	£189,474	Significantly high liabilities due within one year; unusual given micro size, likely includes deferred or complex obligations.
Net Current Assets (Working Capital)	£196,455	Positive and large working capital, indicating sufficient liquidity to cover short-term debts.
Net Assets (Equity)	£196,455	Net assets have nearly doubled since incorporation in 2022, showing growth and retained earnings.
Fixed Assets	£0	No long-term physical or intangible assets recorded, possibly indicating a service-based or early-stage business.
Number of Employees	1	Very small workforce aligns with micro-entity status; manageable overhead costs.
Shareholder Funds	£196,455	Equity fully supports the net assets, indicating no hidden or off-balance sheet liabilities.

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3. Diagnosis

• Liquidity and Capital Structure:
  The company’s net current assets are positive and substantial relative to current assets, which signals a "healthy cash flow" situation and sufficient short-term liquidity. The high current liabilities figure, which outweighs current assets, is offset by the positive net current assets reported—this could be due to the presentation format or offsetting items such as negative liabilities being shown as positive in the balance sheet presentation. This anomaly should be clarified for a more precise diagnosis.

• Asset Base:
  The absence of fixed assets suggests that the company operates primarily in a service capacity or has not invested in significant long-term assets. This is common in early-stage or consultancy businesses but limits collateral availability for lending.

• Profitability and Growth:
  Although detailed profit and loss data is unavailable (not filed under micro-entity rules), the doubling of net assets from £104k in 2022 to nearly £196k in 2025 implies retained profits or capital injections, indicating growth and accumulation of financial strength.

• Management and Control:
  With a sole director/shareholder controlling 75-100% of shares and voting rights, decision-making is streamlined but concentrated. This can be efficient but carries governance risks related to lack of diverse oversight.

• Compliance Status:
  The company is active, filing accounts and confirmation statements on time, which reduces risk of regulatory penalties and indicates good administrative health.

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4. Recommendations

• Clarify Liability Structure:
  Investigate the nature and classification of current liabilities to understand why they appear significantly higher than current assets yet net current assets remain positive. This will help identify any risks of short-term liquidity pressure masked by reporting format.

• Consider Asset Diversification:
  If growth continues, planning to acquire some fixed assets or intangible assets could strengthen operational capacity and provide security for financing.

• Maintain Cash Flow Monitoring:
  Continue regular monitoring of cash flow to ensure that the company maintains its "healthy cash flow" status, especially given the high current liabilities figure.

• Enhance Governance:
  Consider adding additional directors or advisors to provide checks and balances and broaden strategic oversight, improving corporate governance and stakeholder confidence.

• Profit & Loss Reporting:
  Even though not mandatory for micro-entities, voluntarily preparing and reviewing profit and loss accounts could give better insights into operational performance and profitability trends.

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