WILLETT SOLUTIONS LTD

Executive Summary

WILLETT SOLUTIONS LTD demonstrates severe financial weakness with negative net assets and substantial working capital deficits, undermining its capacity to service debt or meet commercial obligations. The company’s financial trajectory is deteriorating, with increasing liabilities and declining liquidity, warranting a decline of credit facilities. Close monitoring of liquidity and any remedial actions is essential should circumstances change.

WILLETT SOLUTIONS LTD - Analysis Report

Company Number: 14300298

Analysis Date: 2025-07-20 15:38 UTC

1. Credit Opinion: DECLINE
   WILLETT SOLUTIONS LTD exhibits significant financial distress as evidenced by persistent and deepening negative net assets and net current liabilities. The company’s liabilities substantially exceed its current assets, indicating poor liquidity and an inability to meet short-term obligations. The sharp increase in current liabilities from £29,118 (2023) to £52,049 (2024) alongside declining current assets signals deteriorating financial health. Given these indicators, the company is not currently positioned to service debt or withstand economic shocks. Approval of credit facilities would expose the lender to high risk without mitigating assurances or substantial security.

2. Financial Strength:
   The balance sheet reveals a negative net asset position worsening from -£25,120 in 2023 to -£49,378 in 2024. Fixed assets are negligible (£1), suggesting limited tangible collateral. The company's total liabilities exceed assets by a wide margin, reflecting accumulated losses or undercapitalization. Shareholders' funds are negative, indicating that the company’s equity base is eroded. This financial profile is characteristic of a company struggling to generate sufficient profits or manage expenses effectively. The micro-entity reporting framework used suggests limited disclosures, but the available data clearly show weak financial stability.

3. Cash Flow Assessment:
   Current assets of £2,683 against current liabilities of £52,049 yield a net current liability of -£49,366 at the 2024 year-end, highlighting acute liquidity challenges. The company’s working capital deficit implies it is unable to cover its short-term debts without external funding or asset sales. The absence of detailed profit and loss data limits comprehensive cash flow assessment, but the negative working capital trend indicates operational cash flow deficits or reliance on creditor financing. This liquidity strain raises concerns about ongoing operational viability and debt servicing capability.

4. Monitoring Points:

• Net current liabilities and working capital trends: continued deterioration may signal insolvency risk.
• Changes in creditors’ terms or increases in short-term borrowings: could exacerbate liquidity issues.
• Any capital injections or restructuring efforts to restore equity and improve liquidity.
• Director’s strategic plans or trading updates that might affect financial recovery.
• Timely filing of accounts and confirmation statements to monitor compliance and changes in financial position.