WILFLOW LTD
Executive Summary
WILFLOW LTD currently faces significant financial challenges characterized by negative equity and strained liquidity, indicating distress. Immediate action is required to improve cash flow, restructure debt, and enhance profitability to restore financial health and secure future viability.
View Full Analysis Report →Company Analysis
This analysis is opinion only and should not be interpreted as financial advice.
WILFLOW LTD - Analysis Report
Financial Health Assessment of WILFLOW LTD (As of 31 August 2024)
1. Financial Health Score: D
Explanation:
WILFLOW LTD shows significant financial strain, notably with negative shareholders’ funds (equity) and a high level of creditors falling due after one year, indicating potential solvency concerns. The deterioration in net assets and working capital suggests the company is in an unhealthy financial state, with symptoms pointing towards financial distress.
2. Key Vital Signs
Metric | 2024 Value (£) | Interpretation |
---|---|---|
Fixed Assets | 104,536 | Moderate investment in long-term assets; reduced from previous year (139,089 in 2023) suggesting disposals or depreciation. |
Current Assets | 23,061 | Low level of liquid and short-term assets; declined from 27,371 in 2023, indicating weaker short-term financial flexibility. |
Prepayments and Accrued Income | 30,006 | Consistent prepayments; considered part of current assets but not immediately liquid. |
Current Liabilities | 64,070 | Debts due within one year; manageable relative to current assets but still poses liquidity pressure. |
Creditors Due After One Year | 136,819 | Large long-term liabilities; indicates significant debt burden affecting future solvency. |
Shareholders’ Funds (Equity) | -43,286 | Negative equity; a critical "symptom of distress" indicating liabilities exceed assets, threatening company survival. |
Average Number of Employees | 3 | Small workforce consistent with micro entity status. |
Additional Indicators:
Working Capital (Current Assets - Current Liabilities):
Using 2024 data: 23,061 - 64,070 = -41,009 (negative working capital)
This indicates the company does not have sufficient liquid assets to meet short-term obligations, a vital sign of cash flow stress.Trend Analysis:
From 2022 to 2024, shareholders’ funds have worsened from -37,638 to -43,286, and liabilities remain high, showing persistent financial weakness.
3. Diagnosis
WILFLOW LTD is exhibiting classic "symptoms of financial distress": negative equity, escalating long-term creditors, and negative working capital. The persistent negative net assets reveal that the company's liabilities exceed its assets, which undermines its solvency and capital structure. The reduction in fixed assets might reflect attempts to generate cash or asset impairment. The company’s liquidity is strained, with current liabilities substantially exceeding current assets, indicating potential difficulties in meeting short-term debts without external funding or operational improvements.
Given the company is a micro entity with a small workforce and a niche industry focus (sewerage), it may be facing sector-specific pressures or startup phase challenges. The director, who owns 100% of shares, has sole control but must urgently address these financial imbalances to avoid insolvency risks.
4. Recommendations
To improve WILFLOW LTD’s financial wellness and restore vitality, consider the following steps:
Improve Liquidity and Working Capital:
- Accelerate collection of receivables and reduce stock levels if applicable.
- Negotiate extended payment terms with suppliers to ease short-term cash outflows.
Restructure and Reduce Debt:
- Engage with creditors to restructure or refinance long-term liabilities, possibly converting some debt into equity.
- Explore grants or sector-specific funding to reduce reliance on costly debt.
Enhance Profitability:
- Review pricing, cost control, and operational efficiency to improve margins.
- Focus on core profitable activities and consider divesting non-essential assets.
Regular Financial Monitoring:
- Implement rigorous monthly cash flow forecasting to detect and manage liquidity risks early.
- Monitor key ratios such as current ratio and debt to equity closely.
Seek Professional Advice:
- Given the negative equity, consult insolvency practitioners or financial advisors to explore turnaround strategies and avoid formal insolvency procedures.
More Company Information
Recently Viewed
Follow Company
- Receive an alert email on changes to financial status
- Early indications of liquidity problems
- Warns when company reporting is overdue
- Free service, no spam emails Follow this company