Company Number: 13917216

Analysis Date: 2025-07-29 18:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Wing Wo Ltd is a recently established private limited company operating in the take-away food sector. Its financials show improvement in net assets and a reduction in current liabilities, but it continues to report net current liabilities (negative working capital), indicating short-term liquidity pressure. The company’s ability to meet short-term obligations is constrained, though the improving trend in net assets and shareholder funds signals some recovery. Credit approval should be conditional upon ongoing monitoring of liquidity and cash flow, with possibly limited credit facilities initially.

2. Financial Strength:
   The balance sheet shows net assets increased from £4,641 to £9,537 over the last year, reflecting retained earnings growth. Fixed assets stand at £16,334, depreciated from £20,417, indicating some asset usage but still a tangible asset base. Current liabilities reduced significantly from £27,751 to £16,910, improving the short-term obligations picture but still exceeding current assets (£10,113), resulting in a net current liability of £6,797. Shareholders’ funds remain modest but have doubled, indicating reinvestment of profits or capital injection. Overall, the financial position is fragile due to working capital deficits but shows positive momentum.

3. Cash Flow Assessment:
   Cash on hand decreased slightly to £9,063 but remains the vast majority of current assets, with minimal stock levels (£1,050). Negative net current assets highlight working capital challenges; the company may rely on timely creditor payments or additional financing to cover short-term obligations. Average staff increased from 3 to 4, suggesting some operational scaling. The negative working capital and reliance on cash reserves suggest limited liquidity cushion. Continuous cash flow monitoring and possibly arranging overdraft or short-term credit lines are advisable.

4. Monitoring Points:

• Liquidity metrics: Current ratio and quick ratio to track working capital improvements.
• Cash flow trends: Operating cash flow sufficiency to cover liabilities and capex.
• Creditor days: To ensure payable terms are managed and not extending risk.
• Profitability trends: To confirm ongoing positive retention of earnings.
• Director’s adherence to credit terms and timely filing compliance.
• Any changes in ownership or control that may affect governance or financial discipline.