WILLIAMS LOGISTICAL SOLUTIONS LTD

Executive Summary

Williams Logistical Solutions Ltd currently faces high solvency and liquidity risks, with substantial negative net assets and working capital deficits persisting over multiple years. While the company remains compliant with filings and shows some operational activity, its heavy reliance on director loans and declining employee base raise concerns about sustainable business operations. Further due diligence should focus on debtor quality, director loan terms, and management’s recovery strategies to better understand the company’s financial stability.

WILLIAMS LOGISTICAL SOLUTIONS LTD - Analysis Report

Company Number: 12432852

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, evidenced by sustained and large net liabilities over multiple years. Net current liabilities remain substantial (£420k negative as of the latest accounts), and there is a persistent deficit in shareholders' funds. This indicates the company’s obligations substantially exceed its assets, raising concerns about its ability to meet short-term and long-term liabilities.

2. Key Concerns:

• Severe Negative Net Assets and Working Capital: Over the last three years, the company has reported negative net assets exceeding £400k and negative net current assets, implying ongoing financial distress and inability to cover short-term debts.
• High Reliance on Director’s Loan Account: The director’s loan account is a significant creditor (£317k), unsecured and repayable on demand, suggesting reliance on insider funding rather than external finance. This may not be sustainable or reliable in a stress scenario.
• Declining Operational Scale and Employee Reduction: The average number of employees has dropped from 9 to 4 in the latest year, potentially indicating reduced operational capacity or financial constraints impacting business stability.

3. Positive Indicators:

• Timely Filing and Compliance: The company is up to date with its statutory filings (accounts and confirmation statements) with no overdue returns, demonstrating regulatory compliance and good governance in administrative matters.
• Active Status and Recent Name Change: The company remains active with no liquidation or administration status, and recent rebranding (name change in April 2024) may indicate strategic repositioning efforts.
• Revenue Growth in Debtors: Trade debtors nearly doubled from £104k to £174k year-on-year, suggesting increased sales or contract activity, which may translate into future cash inflows if collected efficiently.

4. Due Diligence Notes:

• Investigate the nature and collectability of trade debtors to assess liquidity prospects and cash flow timing.
• Review the terms, security, and repayment arrangements relating to the director’s loan to understand its impact on solvency and creditor hierarchy.
• Examine management’s plans or forecasts addressing the negative equity and working capital deficits to gauge operational viability and turnaround prospects.
• Assess the reasons behind the significant reduction in staff and how this affects operational capacity and service delivery in the freight transport sector.
• Confirm no undisclosed contingent liabilities or regulatory issues given the financial distress signals.