Company Number: 13102467

Analysis Date: 2025-07-20 11:02 UTC

1. Credit Opinion: DECLINE
   WILTON GILBERT LIMITED shows a deteriorating financial position with net liabilities of £12,044 as of 31 December 2023, down from net assets of £19,459 the previous year. The company posted an operating loss of £5,503 in 2023 compared to a profit of £32,317 in 2022. Negative working capital of £10,469 and declining cash balances impair its ability to meet short-term obligations. The absence of trade debtors and reliance on creditor financing raise concerns about cash flow sustainability. Given this financial weakness and negative trends, the company poses a high credit risk and is not recommended for credit approval at this time.

2. Financial Strength:
   The balance sheet reveals a sharp decline from positive net assets to net liabilities within one year. Fixed assets decreased slightly, but the major issue is the reduction in current assets from £41,597 to £9,862, mainly cash, and the elimination of debtors (£22,970 in 2022 to zero). Current liabilities nearly quadrupled to £20,331, while long-term creditors remain significant at £4,454. Shareholders’ funds moved from a positive £19,447 to a negative £12,144, indicating erosion of equity and potential insolvency risk.

3. Cash Flow Assessment:
   Cash reserves have fallen from £18,627 to £9,862. The lack of trade receivables in 2023 suggests either collection issues or reduced sales on credit. Negative net current assets indicate insufficient liquidity to cover short-term liabilities. The company’s administrative expenses have increased substantially, causing operating losses and further straining cash flow. This situation highlights a liquidity crunch that limits the company’s ability to service debt or take on new credit facilities without additional capital injection or restructuring.

4. Monitoring Points:

• Track cash balances monthly to ensure liquidity does not deteriorate further.
• Monitor operating expenses closely, especially administrative costs, to identify cost-saving opportunities.
• Review debtor days and sales credit policy to improve working capital.
• Watch creditor payment terms and amounts to avoid supplier disputes or insolvency triggers.
• Assess any capital injections or restructuring plans proposed by management to restore equity and solvency.