WINKFIELD ROW LTD

Executive Summary

WINKFIELD ROW LTD is currently experiencing financial distress, indicated by persistent negative working capital and equity, reflecting liquidity and solvency challenges. Immediate actions to improve cash flow, recapitalize the business, and fulfill compliance obligations are essential to stabilize and restore financial health. Without intervention, the company’s financial prognosis remains guarded with risk of insolvency.

WINKFIELD ROW LTD - Analysis Report

Company Number: NI682121

Analysis Date: 2025-07-20 14:07 UTC

Financial Health Assessment for WINKFIELD ROW LTD

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1. Financial Health Score: D

Explanation:
WINKFIELD ROW LTD currently shows a financial health grade of D, reflecting a company experiencing financial distress. Its net current liabilities and negative net assets over the past two years signal underlying liquidity and solvency issues. While the company is still active, these symptoms suggest urgent attention is needed to restore financial wellness.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	2022 (£)	Interpretation
Current Assets	1,437	3,039	6,849	Shrinking cash and short-term resources
Current Liabilities	1,638	3,240	6,482	High short-term debts remain relatively constant
Net Current Assets	(201)	(201)	367	Negative working capital indicates liquidity stress
Net Assets (Equity)	(201)	(201)	367	Negative book value implies liabilities exceed assets
Shareholders’ Funds	(201)	(201)	367	Reflects accumulated losses or withdrawals
Filing Status	No overdue for accounts	Overdue confirmation statement	Overdue confirmation statement	Compliance is currently a concern

Interpretation of Vital Signs:

• Liquidity (Net Current Assets): Negative net current assets of £201 for two consecutive years mean the company’s short-term obligations exceed its short-term assets, a critical "symptom of distress" akin to a patient with low blood pressure—indicating insufficient resources to meet immediate demands.
• Solvency (Net Assets): Negative net assets highlight that the company’s total liabilities exceed its total assets, which is a serious warning sign of potential insolvency if this trend continues.
• Trend: Declining current assets and steady current liabilities over three years show worsening liquidity, a progressive weakening of the company’s financial condition.
• Compliance: The overdue confirmation statement filing poses regulatory risks and may signal administrative or governance issues.

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3. Diagnosis

WINKFIELD ROW LTD exhibits classic symptoms of financial distress: persistent negative working capital and negative equity over the last two financial years. This suggests the company is struggling to generate sufficient cash flow or profits to cover debts and sustain operations. The shrinking current assets indicate diminishing liquidity, limiting operational flexibility and increasing the risk of default on obligations.

Despite being a micro-entity with low employee numbers (average 1), the company’s financial health is compromised. The presence of a single director and shareholder with high control concentration can be a strength if proactive measures are taken, but also a risk if governance and strategic oversight are limited.

The overdue confirmation statement filing is a mild governance symptom, potentially reflecting internal resource constraints or administrative oversight.

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4. Recommendations

To improve financial wellness, the company should consider the following actions:

• Strengthen Liquidity:

  • Inject working capital through shareholder loans or equity if possible.
  • Accelerate cash collections and delay discretionary payments to improve cash flow.
  • Evaluate and reduce unnecessary expenses to preserve cash.

• Address Negative Equity:

  • Explore recapitalization options or debt restructuring to balance the balance sheet.
  • Consider focusing on profitable contracts or customers to improve retained earnings.

• Improve Compliance and Governance:

  • File overdue confirmation statements promptly to avoid penalties and maintain regulatory good standing.
  • Implement basic financial controls and regular reviews to detect early signs of distress.

• Strategic Review:

  • Conduct a detailed business review to identify root causes of financial weakness — e.g., pricing, cost structure, market demand.
  • Seek professional advice for turnaround strategies or insolvency options if recovery seems unlikely.

• Monitor Closely:

  • Regularly track key financial metrics (liquidity ratios, cash flows) as vital signs of ongoing health.
  • Establish early warning systems for cash flow shortages or covenant breaches.

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