WJB FINANCE LTD

Executive Summary

WJB FINANCE LTD is an active micro-entity with stable but minimal equity and a consistent negative working capital position, indicating liquidity risk. The company’s ability to meet short-term obligations is constrained by current liabilities exceeding current assets substantially. Credit approval is possible on a conditional basis with stringent monitoring and risk mitigation measures.

WJB FINANCE LTD - Analysis Report

Company Number: 13103185

Analysis Date: 2025-07-20 11:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   WJB FINANCE LTD demonstrates ongoing operational activity with micro-entity filings up to 2024, showing stable but very modest net asset growth. However, the company’s current liabilities significantly exceed current assets as of the latest accounts, indicating a negative working capital position that could pressure its short-term liquidity. The director, who is also the sole significant controller, has maintained compliance with filing deadlines, but the small scale of operations and weak liquidity require cautious credit exposure. Approval is recommended with conditions such as limits on lending amount, regular financial monitoring, and possibly requiring personal guarantees or collateral to mitigate risk.

2. Financial Strength
   The company’s balance sheet shows total assets of approximately £213,974 against liabilities of £208,275 (all current), leaving net assets and shareholders’ funds at a low £5,699 as of 31 December 2024. Fixed assets have declined slightly from £144k in 2023 to £125k in 2024. Shareholders’ funds have increased gradually from a negative £1,546 at incorporation in 2020 to positive but minimal equity. The company remains very small with a single employee, consistent with micro-entity classification. The balance sheet structure indicates very limited capital buffer and high reliance on short-term creditor financing.

3. Cash Flow Assessment
   Current assets (£88,481) are substantially lower than current liabilities (£208,275), yielding a negative working capital of around £119,794. This gap highlights potential liquidity stress in meeting short-term obligations from available cash, receivables, or stock. The company’s ability to convert fixed assets or increase capital is uncertain given the limited equity base. Without detailed cash flow statements, it is difficult to confirm ongoing cash generation, but the negative net current assets position is a red flag for repayment capacity of short-term debts.

4. Monitoring Points

• Track working capital and liquidity ratios quarterly to detect worsening short-term financial stress.
• Monitor timely payment of creditors and any increase in overdue liabilities.
• Review any changes in director ownership or appointment which might impact governance.
• Watch for any significant changes in fixed assets or capital injections that could improve financial strength.
• Ensure continued compliance with filing deadlines to avoid regulatory complications.