Company Number: SC685426

Analysis Date: 2025-07-20 15:29 UTC

1. Risk Rating: HIGH
   Wilson Lets Limited exhibits a high risk profile primarily due to significant liquidity concerns and solvency issues suggested by its financial structure. Despite being active and compliant with filing deadlines, the company's large current liabilities relative to current assets indicate potential challenges in meeting short-term obligations.

2. Key Concerns:

• Liquidity Deficit: The company shows net current liabilities of approximately £120,000 consistently over the last three years, with current liabilities vastly exceeding current assets and cash reserves declining from £14,936 (2023) to £9,233 (2024). This raises concerns about cash flow sufficiency to cover immediate debts.
• High Long-term Debt: The company carries substantial bank loans and overdrafts of £292,937 due after more than one year, which is high relative to its net assets (~£9,425). This debt burden may constrain operational flexibility and increase default risk.
• Operational Sustainability: The absence of a detailed profit and loss account in the filings (per small company exemption) limits visibility on profitability and cash generation. Coupled with minimal equity and relatively static net assets, this suggests limited operational cushion to absorb shocks or invest in growth.

3. Positive Indicators:

• Compliance and Governance: The company is current on statutory filings, including accounts and confirmation statements, demonstrating regulatory compliance and governance discipline.
• Investment Property Asset: Fixed assets consist solely of investment properties valued at £422,370, which have not been impaired. This stable asset base could provide collateral or value realization potential in adverse scenarios.
• Single Director and Shareholder: The company is under the control of one individual (Mr. Andrew Wilson), which may facilitate swift decision-making and clear responsibility for company affairs.

4. Due Diligence Notes:

• Cash Flow Analysis: Obtain detailed cash flow statements and bank statements to assess liquidity trends and working capital management.
• Debt Terms and Covenants: Review loan agreements to understand repayment schedules, interest rates, and any covenants that might trigger defaults.
• Profitability and Revenue Streams: Request management accounts or additional disclosures to evaluate ongoing profitability and revenue sustainability given the lack of profit and loss details in filed accounts.
• Valuation and Marketability of Investment Properties: Confirm market value and liquidity of investment properties, including occupancy rates and rental income, to assess realisable asset value.
• Related Party Transactions: While none were disclosed, verify any informal financial arrangements or guarantees involving the sole director.