WIKEM LIMITED

Executive Summary

Wikem Limited is financially distressed with significant and sustained negative net assets and working capital deficits, indicating poor liquidity and solvency. The company is unable to cover short-term liabilities from current assets and shows no sign of financial improvement, making new credit facilities high risk. Credit extension is not recommended without substantial financial restructuring or capital support.

WIKEM LIMITED - Analysis Report

Company Number: 13033118

Analysis Date: 2025-07-20 13:00 UTC

1. Credit Opinion: DECLINE
   Wikem Limited exhibits ongoing and significant net liabilities and negative shareholders' funds over multiple years, indicating persistent financial distress. The company’s net current liabilities exceed current assets by a large margin (£186k negative working capital in 2024), highlighting serious liquidity constraints. The absence of material fixed asset turnover or growth and a continued negative equity position undermine confidence in the company’s ability to meet short-term obligations or service new credit facilities. No evidence suggests improving financial health or operational profitability. Therefore, extending credit would carry a high risk of default.

2. Financial Strength:
   The balance sheet shows fixed assets of £175,971 consistently held since incorporation in 2020 but with no corresponding increase in current assets or reduction in liabilities. Current liabilities remain very high (£196,741 in 2024) relative to current assets (£10,089), resulting in negative working capital. The company’s net assets and shareholders’ funds are negative (£-11,041 in 2024), reflecting accumulated losses or possibly significant creditor claims. The financial position has shown no meaningful improvement over the last four years, raising concerns over solvency and capital adequacy.

3. Cash Flow Assessment:
   Current asset levels are very low, primarily cash and receivables, insufficient to cover current liabilities. The company is likely reliant on external funding or director loans to continue operating. Negative net current assets suggest ongoing cash flow stress, risking inability to meet short-term creditor payments on time. The minimal employee count (1) indicates limited operational scale but does not offset liquidity issues. No audit or cash flow statement was provided, but micro-entity disclosure and persistent net liabilities imply weak cash generation capacity.

4. Monitoring Points:

• Monitor changes in current liabilities and whether any restructuring occurs to reduce short-term debt burden.
• Watch for improvement in net current assets and positive movements in shareholders’ funds.
• Assess any new capital injections or financial support from directors or shareholders.
• Review future filed accounts for evidence of operational profitability or asset disposals improving liquidity.
• Track any late filing or changes in company status indicative of financial distress escalation.