Company Number: 14469676

Analysis Date: 2025-07-29 14:13 UTC

1. Risk Rating: MEDIUM
   Witney Laundrette Limited exhibits moderate financial risk primarily due to persistent net current liabilities and negative working capital, despite maintaining positive net assets and shareholder funds. As a relatively new company incorporated in late 2022, its financial track record is limited, which contributes to uncertainty regarding operational sustainability.

2. Key Concerns:

• Negative Net Current Assets: The company has reported net current liabilities of £11,177 for the year ended 2024, an improvement from £20,548 the previous year, but still indicating short-term liquidity challenges. This suggests that current liabilities exceed current assets, which may strain the company’s ability to meet short-term obligations.
• Limited Operating History: Incorporated in November 2022, the company has less than two years of operational data. This limited history restricts the ability to assess consistent revenue generation, profitability, and cash flow stability.
• Amortisation of Intangible Assets and Depreciation Charges: The company holds intangible assets (goodwill) and tangible fixed assets with ongoing amortisation and depreciation charges, which could impact profitability and cash flow if not supported by sufficient revenues.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Net assets stand at £30,030 as of November 2024, reflecting a solid equity base relative to the size of the business. This indicates that overall, the company’s assets exceed its liabilities.
• Improvement in Cash Reserves: Cash at bank increased to £36,760 in 2024 from £22,273 in 2023, showing improved liquidity in cash terms despite net current liabilities.
• No Filing or Compliance Issues: The company’s accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance practices.
• Stable Management and Control: Directors and persons with significant control are consistent and local, with no indication of disqualification or governance concerns.

4. Due Diligence Notes:

• Cash Flow Analysis: Obtain detailed management accounts or cash flow statements to verify if the company can generate sufficient operational cash flow to cover short-term liabilities and ongoing amortisation/depreciation expenses.
• Revenue and Profitability Trends: Review turnover and profit figures, which are not disclosed in the filings, to assess operational performance and sustainability.
• Nature of Provisions: Clarify the nature of provisions for liabilities (£4,091 in 2024) to understand potential contingent liabilities or obligations that may impact solvency.
• Lease Commitments and Other Off-Balance Sheet Obligations: Investigate any operating lease or hire purchase commitments affecting cash flow and financial flexibility.
• Related Party Transactions: Given that directors and PSCs share the same address and control, verify any intercompany or related party transactions that might affect financial stability.