Company Number: 12434556

Analysis Date: 2025-07-29 20:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Windsar Care QECC Ltd is an active private limited company operating in residential care services. However, the company exhibits a negative net asset position (£-408,022 as at 31 March 2024) and significant net current liabilities (£-2,287,885), indicating tight liquidity. The large current liabilities largely relate to trade and other creditors, and the company carries substantial long-term loans (£7.8m). While fixed assets remain substantial (£9.7m), the decline in net assets and working capital weakness raise concerns about short-term financial flexibility. Credit can be considered on a conditional basis, subject to close monitoring of cash flow and working capital improvements, and potential collateral on tangible assets.

2. Financial Strength:
   The balance sheet is asset-heavy with tangible fixed assets valued at nearly £9.7m, primarily land and buildings, providing some collateral security. However, shareholders’ funds are negative and worsened since the prior year (£-236,551 in 2023 to £-408,022 in 2024), reflecting accumulated losses or deficits. Current liabilities have decreased from £10.5m to £7.8m but remain significant relative to current assets (£0.5m). Long-term debt remains high, indicating leverage risk. Overall, the company’s financial strength is strained by negative equity and high liabilities but supported by substantial fixed assets.

3. Cash Flow Assessment:
   The company’s cash balance decreased slightly from £382k to £347k, yet current liabilities remain much higher than current assets, resulting in a negative net working capital position. Debtors have improved but remain modest (£163k). The sizable creditor balances, especially other creditors (£2.7m), suggest payment scheduling pressures. Lack of detailed P&L data limits full cash flow visibility, but the working capital deficit and negative equity indicate liquidity risk. Cash flow management and creditor negotiations are critical to sustaining operations.

4. Monitoring Points:

• Net current asset position: Watch for improvements in working capital to reduce liquidity risk.
• Debt servicing capability: Monitor interest and principal repayment on long-term loans to avoid covenant breaches.
• Profitability and reserves: Track profit and loss reserves recovery to restore positive shareholders’ funds.
• Debtor and creditor aging: Review collections and payment terms to optimize cash conversion cycle.
• Fixed asset valuations: Confirm stability or appreciation of tangible assets used as security.