WILJURA DIGITAL SOLUTIONS LTD

Executive Summary

Wiljura Digital Solutions Ltd, a micro-entity in its first year, shows early signs of financial distress with negative working capital and net assets, indicating liquidity challenges and undercapitalization. Immediate actions to improve cash flow, control costs, and secure additional funding are critical to stabilize the business and support sustainable growth. Compliance and governance appear sound, providing a stable foundation for recovery if addressed promptly.

WILJURA DIGITAL SOLUTIONS LTD - Analysis Report

Company Number: 15026233

Analysis Date: 2025-07-20 13:01 UTC

Financial Health Assessment: WILJURA DIGITAL SOLUTIONS LTD

---

1. Financial Health Score: D

Explanation:
The company is exhibiting clear symptoms of financial distress, with net current liabilities significantly exceeding current assets, resulting in negative net assets and shareholders’ funds. While it is a newly incorporated micro-entity (less than 1 year old), these early signs suggest challenges in liquidity and capital structure that need urgent attention. The ‘D’ grade reflects worrying financial health that requires corrective action to avoid deterioration.

---

2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£1,231	Very low level of liquid and short-term assets available to meet immediate obligations.
Current Liabilities	£14,515	Short-term debts and obligations that must be settled within the year; significantly higher than assets.
Net Current Assets (Working Capital)	-£13,284	Negative working capital indicates inability to cover short-term liabilities with short-term assets; a critical symptom of cash flow distress.
Net Assets (Total Equity)	-£13,284	Negative equity means liabilities exceed assets; this is an unhealthy balance sheet position.
Shareholders’ Funds	-£13,284	Reflects accumulated losses or undercapitalization; the owner’s stake is effectively in deficit.
Company Age	~1 year	Company is newly formed, often typical for early-stage losses but needs a clear path to profitability.
Account Category	Micro	Minimal reporting requirements; financial data may be limited but essentials reflect poor liquidity.

---

3. Diagnosis: What the Financial Data Reveals

• Liquidity Crisis ("Weak Pulse"): Current liabilities exceed current assets by over £13k, signalling that the company may struggle to meet its short-term obligations such as supplier payments, staff wages, or taxes without additional financing. This is akin to a patient showing signs of dehydration—urgent replenishment is needed.

• Negative Net Assets ("Structural Weakness"): The company’s total liabilities surpass its total assets, resulting in negative equity. This condition can limit access to credit and investor confidence, similar to a weakened skeletal structure that cannot support growth.

• Early Stage Losses ("Initial Symptoms"): As a start-up incorporated in mid-2023, some initial operating losses and negative equity are common due to set-up costs and limited revenues in the first year. However, the extent of the negative balance sheet suggests that the burn rate (expenses vs income) is high relative to resources.

• Single Shareholder Control ("Central Nervous System"): Mr Philip Leeder owns 100% of shares and voting rights, implying centralized decision-making. This can be advantageous for swift strategic changes but also concentrates financial risk and responsibility.

• No Overdue Filings ("Stable Monitoring"): The company has filed accounts and confirmation statements on time, indicating good compliance with statutory obligations, which is positive for legal health.

---

4. Recommendations for Financial Wellness Improvement

1. Improve Liquidity ("Hydration Therapy")

   • Inject additional working capital through equity infusion or short-term loans to cover immediate liabilities.
   • Negotiate extended payment terms with suppliers to ease cash flow pressures.

2. Cost Control and Revenue Generation ("Stabilizing Vital Functions")

   • Review operational expenses to identify and reduce non-essential costs.
   • Accelerate client acquisition and revenue streams through marketing and sales initiatives aligned with core management consultancy services.

3. Regular Financial Monitoring ("Routine Check-ups")

   • Establish monthly cash flow forecasts to monitor liquidity and anticipate funding needs.
   • Implement simple accounting controls to track receivables and payables closely.

4. Strategic Planning ("Treatment Plan")

   • Develop a clear business plan with milestones for reaching profitability and positive equity.
   • Consider engaging a financial mentor or advisor to guide early-stage growth and capital management.

5. Prepare for Future Growth ("Rehabilitation")

   • Once liquidity stabilizes, plan for gradual scaling with controlled overheads to avoid overextension.
   • Explore potential funding avenues such as government grants for digital startups or angel investment.

---