WILSON DEVELOPMENTS (ORRS) LTD

Executive Summary

Wilson Developments (Orrs) Ltd demonstrates significant liquidity and solvency concerns due to minimal net current assets and high secured creditor balances relative to equity. While compliance filings are current, the company’s financial structure indicates elevated risk without clear evidence of strong operational cash flow or asset realizability. Further detailed financial and operational due diligence is advised to assess ongoing viability.

WILSON DEVELOPMENTS (ORRS) LTD - Analysis Report

Company Number: SC681609

Analysis Date: 2025-07-29 13:33 UTC

1. Risk Rating: HIGH

Justification: The company’s balance sheet shows extremely tight net current assets (£100) against substantial current liabilities (£2.23m), indicating critical liquidity risk. The net assets remain nominal (£100) despite significant work-in-progress stock and creditors, suggesting low equity buffer. The company relies heavily on secured loans with significant creditor balances that have increased markedly year-on-year. These factors collectively imply a high risk of solvency issues.

2. Key Concerns:

• Liquidity Risk: Current liabilities nearly equal current assets, leaving minimal working capital to meet short-term obligations.
• Capital Structure: Shareholders’ funds are minimal (£100), indicating very low equity and high leverage.
• Reliance on Secured Creditors: Large secured loans from related parties and financial institutions create dependency and potential refinancing risk.

3. Positive Indicators:

• Up-to-date Filings: No overdue accounts or confirmation statements, indicating good compliance.
• Established Director and PSC: Single director with 75-100% ownership providing clarity on control.
• Growing Work-in-Progress: Increase in stock balances may reflect ongoing construction projects and potential revenue growth.

4. Due Diligence Notes:

• Review detailed income statement and cash flow data to assess profitability and cash generation.
• Investigate nature and terms of secured loans and creditor agreements, including repayment schedules.
• Validate valuation and realizability of work-in-progress stock to determine asset quality.
• Assess future contract pipeline and operational plans to evaluate business sustainability.
• Confirm that there are no director disqualifications or regulatory compliance issues beyond filings.