Company Number: 15113722

Analysis Date: 2025-07-20 13:58 UTC

1. Credit Opinion: DECLINE
   Willow & Co Stockbridge Limited shows a net liability position of £4,571 at its first year-end, indicating negative equity and a weak financial foundation. The company’s net current liabilities of £10,600 suggest liquidity strain, and as a newly incorporated micro-entity with limited operating history, it has yet to demonstrate financial stability or profitability. The negative net assets and working capital deficit raise significant concerns about its ability to meet short-term obligations and service any credit facilities reliably. Without clear evidence of incoming cash flow or a robust capital injection, extending credit would carry high risk.

2. Financial Strength:
   The balance sheet reveals minimal fixed assets (£6,029) and current assets (£37,971) offset by current liabilities of £49,165, resulting in net current liabilities of £10,600 and an overall net liability position. Shareholders’ funds are negative (£4,571), reflecting accumulated losses or start-up costs not yet offset by profits. The company operates with only three employees and is classified as a micro-entity, limiting the scale of operations and financial resources. This fragile financial base undermines resilience in adverse conditions.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, indicating potential short-term liquidity challenges. There is no direct cash flow statement available, but the negative working capital suggests the company may need external funding or timely receivables collection to cover immediate payables. The absence of audit or detailed financial disclosures further limits insight into cash generation capacity. Overall, the liquidity position is weak and could jeopardize operational continuity if cash inflows are delayed or insufficient.

4. Monitoring Points:

• Quarterly updates on cash flow statements and debtor/creditor aging to assess liquidity trends.
• Progress on profitability and reduction of negative equity in subsequent filings.
• Management actions to improve working capital or secure additional financing.
• Any changes in director appointments or PSC control that might impact business strategy or credit risk.
• Timely submission of next accounts and confirmation statements to monitor compliance and financial health.