WILSON DESIGN AND BUILD LTD

Executive Summary

WILSON DESIGN AND BUILD LTD demonstrates a robust financial position with strong liquidity and growing equity, indicative of healthy operational performance typical for a micro-entity in construction. The company has effectively managed its short and medium-term liabilities, but should monitor asset utilization and continue prudent debt management to sustain growth. Overall, the financial health is solid with positive outlook if current trends continue.

WILSON DESIGN AND BUILD LTD - Analysis Report

Company Number: 12435501

Analysis Date: 2025-07-29 15:32 UTC

Financial Health Assessment for WILSON DESIGN AND BUILD LTD
Date of Analysis: 2024-10

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1. Financial Health Score: B

Explanation:
WILSON DESIGN AND BUILD LTD shows solid improvement in its financial position over recent years, demonstrating healthy growth in net assets and liquidity. The company has a strong working capital position and positive net assets, indicating good financial stability for a micro-entity in the construction sector. However, the presence of some medium-term liabilities and a slight decrease in fixed assets suggest some caution is warranted. Overall, the company is financially sound but should remain vigilant in managing liabilities and asset utilization.

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2. Key Vital Signs

Metric	Value (Year ending 31 Jan 2024)	Interpretation
Fixed Assets	£26,178	Modest investment in long-term assets; slight decline from prior year suggests controlled capital expenditure.
Current Assets	£205,155	Healthy level of liquid assets (cash, receivables, stock) to meet short-term obligations.
Current Liabilities	£113,608	Debts due within one year; manageable given current assets.
Net Current Assets	£93,254	Strong positive working capital, indicating good liquidity and operational cash flow health.
Creditors Due After 1 Year	£38,178	Medium-term liabilities present but reduced compared to prior year, indicating improving solvency.
Net Assets / Shareholders’ Funds	£81,254	Solid equity base demonstrating accumulated profits and retained earnings.
Share Capital	£200	Nominal share capital typical of small private companies.
Average Employees	2	Very small workforce consistent with micro company status.

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3. Diagnosis: Financial Health and Underlying Business Condition

• Liquidity ("Healthy Cash Flow"):
  The company exhibits strong liquidity with net current assets of £93,254, more than doubling from the prior year (£42,628). This suggests that WILSON DESIGN AND BUILD LTD is comfortably able to cover its short-term liabilities with current assets, an important symptom of financial health and operational soundness.

• Solvency ("Strong Financial Backbone"):
  Net assets have grown significantly from £23,691 in 2023 to £81,254 in 2024, indicating the company is building equity and retaining earnings. The reduction in long-term creditors from £54,412 to £38,178 signals an improving ability to meet longer-term obligations, reducing financial distress risk.

• Asset Management ("Asset Utilisation Symptoms"):
  Fixed assets decreased from £35,475 to £26,178, possibly due to asset sales or depreciation outpacing new capital expenditure. While this is not immediately alarming, it could indicate reduced investment in growth or a shift in business focus. Management should monitor to ensure asset base supports operational capacity.

• Growth and Stability ("Healthy Growth Trend"):
  The continual increase in net assets and working capital over consecutive years points to a business that is expanding steadily and maintaining financial discipline. The modest employee base aligns with a focused operation, likely managing projects efficiently.

• Risks and Considerations ("Watchful Observation"):
  The company carries some medium-term liabilities, which have reduced but still represent a financial commitment. The small share capital is typical but means equity cushion is built through retained earnings rather than capital injections. Management must maintain strong cash flow to avoid liquidity squeeze.

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4. Recommendations: Actions to Improve Financial Wellness

1. Optimize Asset Base:
   Conduct a review of fixed assets to ensure they are effectively contributing to revenue generation. Consider reinvesting in essential equipment or technology if current assets decline further.

2. Strengthen Medium-Term Debt Management:
   Continue reducing creditors falling due after one year to improve solvency ratios. Explore refinancing options if interest costs are high or if liabilities could be structured more favourably.

3. Monitor Cash Flow Vigilantly:
   Maintain strong working capital management, ensuring receivables are collected promptly and payables negotiated to optimise cash flow without harming supplier relationships.

4. Plan for Growth Strategically:
   Given the company’s healthy financial position, management might consider measured expansion, possibly increasing workforce or capabilities to take on larger projects, balancing growth with financial prudence.

5. Maintain Compliance and Reporting Discipline:
   The company is up-to-date with filings and accounts, which supports credibility and access to finance. Continue this diligence to avoid penalties and maintain stakeholder confidence.

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