WILLOW TREE CONSULTING LTD

Executive Summary

Willow Tree Consulting Ltd exhibits moderate financial risk primarily due to persistent negative working capital and a minimal net asset base, creating solvency and liquidity concerns. However, the company maintains full regulatory compliance with no overdue filings and shows operational continuity with a single employee. Further due diligence on liabilities and cash flows is recommended to assess ongoing viability.

WILLOW TREE CONSULTING LTD - Analysis Report

Company Number: 13275634

Analysis Date: 2025-07-20 17:59 UTC

1. Risk Rating: MEDIUM
   The company shows ongoing net current liabilities and very limited net assets, indicating some solvency and liquidity risk. However, it remains active and compliant with filings, with no signs of insolvency proceedings, which mitigates immediate high risk.

2. Key Concerns:

• Persistent negative net current assets for the last three years, suggesting ongoing liquidity challenges and potential difficulties meeting short-term obligations.
• Very low net assets (£377 in 2024), significantly down from £2,973 in 2021, indicating erosion of financial buffer and potential solvency concerns.
• Single director ownership and control concentration with limited operational scale (one employee), which may pose governance and operational risk.

3. Positive Indicators:

• The company is up to date with statutory filings (accounts and confirmation statement), indicating regulatory compliance and good governance on administrative matters.
• No evidence of overdue accounts or penalties, reducing regulatory risk.
• The business has maintained a positive number of employees (albeit only one), showing some operational continuity.
• The company is small and micro-entity reporting exemption is applied correctly, reducing audit and administrative burdens.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess risk of default or overdue payments.
• Review cash flow statements (if available) to understand liquidity trends and working capital management.
• Understand the business model and client base to evaluate operational sustainability given low asset base and limited scalability.
• Verify director’s financial support or external funding arrangements as the sole controlling shareholder.
• Confirm absence of any undisclosed contingent liabilities or legal disputes that could impact financial position.