WILSON KENT LTD

Executive Summary

WILSON KENT LTD currently presents a high-risk profile due to negative net assets and significant long-term liabilities exceeding total assets, raising solvency concerns. Although the company complies with filing requirements and holds substantial tangible fixed assets, limited shareholder equity and lack of profitability data highlight the need for thorough due diligence on debt obligations and operational performance before investment consideration.

WILSON KENT LTD - Analysis Report

Company Number: 14531596

Analysis Date: 2025-07-20 16:06 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to negative net assets, significant long-term liabilities exceeding total assets, and minimal equity capital. The balance sheet indicates solvency concerns and potential financial distress.

2. Key Concerns:

• Negative Net Assets: The company’s net assets are -£21,634, showing that liabilities exceed assets, which is a red flag for solvency and may indicate the company is technically insolvent on a balance sheet basis.
• High Creditors Due After One Year: Long-term liabilities of £468,353 surpass total assets less current liabilities (£446,719), indicating the company may struggle to meet its debt obligations.
• Limited Share Capital and Reserves: Share capital is nominal (£3.00 called up share capital per summary, though accounts show £1,002 which may indicate a discrepancy or small issuance), and the accumulated losses (£22,636) reduce shareholder funds, pointing to weak financial backing.

3. Positive Indicators:

• Current Assets and Cash Position: The company holds £27,871 in cash with minimal debtors, which suggests some liquidity in the short term.
• Tangible Fixed Assets: Substantial fixed assets valued at £418,846, primarily land and buildings, provide a tangible asset base that could potentially be leveraged or sold if needed.
• Compliance Status: No overdue filings or confirmation statements; accounts and returns are up to date, indicating regulatory compliance and good governance in this respect.

4. Due Diligence Notes:

• Clarify Nature and Terms of Long-Term Creditors: Investigate the composition, maturity, interest rates, and covenants associated with the £468,353 creditors due after more than one year to assess refinancing or repayment risk.
• Verify Share Capital Details: Resolve the discrepancy between the reported share capital (£3.00 vs. £1,002) and confirm shareholder equity structure.
• Assess Profitability and Cash Flows: Since the income statement was not filed, obtain detailed profit and loss data to evaluate operational performance and cash generation capacity.
• Review Director Backgrounds and Related Party Transactions: Given the company is controlled by two directors who are also PSCs, confirm no conflicts of interest or unusual related party transactions exist.
• Examine Asset Valuation: Confirm the valuation method for tangible fixed assets, especially land and buildings, to ensure they are not overstated and reflect realizable value.

Executive Summary:
WILSON KENT LTD shows significant solvency and financial stability concerns due to negative net assets and substantial long-term liabilities exceeding asset values. While the company maintains regulatory compliance and holds valuable fixed assets, its limited equity and absence of detailed profitability data warrant further investigation before considering investment. The financial structure suggests operational or refinancing challenges ahead without additional capital or improved cash flows.