WILTHORPE CIVIL ENGINEERING LIMITED

Executive Summary

Wilthorpe Civil Engineering Limited’s latest financials reveal deteriorating liquidity and a substantial decline in net assets, raising concerns about its ability to meet short-term liabilities and service debt. The company’s small size and working capital deficit indicate heightened credit risk, leading to a decline recommendation for additional credit facilities at this time. Close monitoring of liquidity and operational performance is advised before reconsidering credit exposure.

WILTHORPE CIVIL ENGINEERING LIMITED - Analysis Report

Company Number: 13550478

Analysis Date: 2025-07-29 19:12 UTC

1. Credit Opinion: DECLINE
   Wilthorpe Civil Engineering Limited exhibits a significant deterioration in liquidity and net asset position in the latest financial year. The company’s net current assets have turned negative (-£1,103), indicating a working capital deficit, and net assets declined sharply from £32,239 in 2023 to £12,199 in 2024. This signals potential cash flow stress and weakening financial stability. Given the micro-entity scale and limited financial resilience, the company currently lacks sufficient buffer to reliably service additional credit facilities without elevated risk.

2. Financial Strength:
   The balance sheet shows a reduction in fixed assets (£22,689 to £17,652) and a drastic drop in current assets from £32,428 to £3,994, while current liabilities increased slightly. This has eroded working capital and shareholders’ funds by over 60% year-on-year. Although shareholders’ funds remain positive, the steep decline undermines confidence in the company’s capital base and ongoing viability. The company’s micro categorization and small employee base (average 2) limit operational scale and diversification.

3. Cash Flow Assessment:
   Negative net current assets imply liquidity constraints and potential difficulty in meeting short-term obligations. The significant decrease in current assets, coupled with stable current liabilities, suggests cash outflows or asset disposals without corresponding inflows. Accruals and deferred income remain stable but do not offset the liquidity pressure. No audit was performed, consistent with micro-entity status, limiting deeper cash flow insights. Tight working capital management and cash generation improvement are critical.

4. Monitoring Points:

• Liquidity ratios and net current asset position in subsequent financial periods.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Any changes in director or ownership structure, given sole control by Mr. Wilkinson.
• Business development and contract acquisition to rebuild asset base and cash reserves.
• External financing or support arrangements that may impact credit risk.