Company Number: 13114679

Analysis Date: 2025-07-20 12:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Wisemill Ltd is an active micro private limited company with limited trading history and no turnover in the latest financial year. The company shows a stable net asset position but a recent decline in current assets and a slight working capital deficit as of 31 January 2024. This suggests limited liquidity to cover short-term obligations at present. Approval is conditional on the company demonstrating improvement in cash flow generation and operational activity to support debt service capacity.

2. Financial Strength:
   The balance sheet indicates total net assets of £11,932, driven primarily by fixed assets valued at £12,010. However, current assets have dropped significantly from £12,486 in 2023 to £976 in 2024, resulting in net current liabilities of £78. The company has no reported turnover in the latest year, which raises concerns about revenue generation and profitability sustainability. Shareholders’ funds remain positive and stable, indicating some equity buffer.

3. Cash Flow Assessment:
   The material reduction in current assets, particularly cash or equivalents, combined with stable current liabilities suggests tightening liquidity. The company’s working capital has moved from a positive £11,426 in 2023 to a deficit in 2024, implying potential cash flow challenges. Without turnover, cash inflows appear constrained, posing risks for meeting short-term commitments unless financed externally or through asset liquidation.

4. Monitoring Points:

• Turnover recovery and revenue trends in the next reporting period to assess business viability
• Cash flow improvements and working capital management
• Changes in current liabilities and any new financing arrangements
• Operational developments that could enhance income generation
• Director actions addressing liquidity constraints and future business plans