WM FIXING LIMITED
Executive Summary
WM FIXING LIMITED demonstrates a fragile financial state characterized by minimal assets and equity, indicating limited operational activity and financial resilience. The company currently lacks the financial vitality necessary for sustainable growth or shock absorption, requiring capital injection and operational development to improve its financial health. Without these measures, the business risks stagnation or inability to support future business demands.
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This analysis is opinion only and should not be interpreted as financial advice.
WM FIXING LIMITED - Analysis Report
Financial Health Assessment for WM FIXING LIMITED
1. Financial Health Score: D
Explanation:
The company currently shows extremely minimal financial activity and capital base, with net assets and shareholders' funds consistently at £1 over the last three years. This score reflects a fragile financial state, indicating a business in its infancy or possibly dormant in operational terms, lacking meaningful asset base or liquidity to support growth or absorb shocks.
2. Key Vital Signs
Metric | 2024 Value | Interpretation |
---|---|---|
Share Capital | £2.00 | Minimal capital invested; very low equity cushion. |
Fixed Assets | £0 | No long-term operational assets like equipment or property. |
Current Assets | £1 | Almost no liquid assets; extremely thin cash or receivables. |
Current Liabilities | £0 | No immediate debts or payables; no short-term financial obligations. |
Net Current Assets | £1 | Positive but negligible working capital; insufficient for operations. |
Net Assets / Shareholders Funds | £1 | Equity base is nearly non-existent; risk of insolvency if losses occur. |
Employee Count | 1 | Sole operator or very small workforce; limited capacity. |
Interpretation:
The company exhibits "symptoms of distress" in financial vitality—almost no capital or assets to sustain operations or growth. The balance sheet is "anemic," indicating it may rely heavily on owner inputs or external funding to operate. The absence of liabilities suggests it is not leveraged, but also not actively engaged in transactions.
3. Diagnosis
WM FIXING LIMITED presents as a micro-entity with a nominal capital structure and minimal financial activity over a four-year period since incorporation. The consistent net assets of £1 indicate the company is either newly established and yet to scale or operating at a very basic level, possibly as a vehicle for limited activities with negligible revenue or expense flows.
The lack of fixed assets and virtually no current assets beyond a single pound suggest the company has no tangible operational base or working capital to fund business activities independently. The absence of liabilities removes immediate financial pressure but also implies limited or no credit relationships or supplier financing.
Key "symptoms" pointing to financial frailty include:
- Minimal equity and asset base
- Lack of operational assets or working capital
- Single employee (likely the director), indicating no operational depth
- No recorded profits or losses visible, possibly due to minimal trading or transactions
This profile is typical of a very early-stage or dormant company rather than a thriving business entity.
4. Recommendations
To improve financial wellness and move from a fragile to a healthy state, WM FIXING LIMITED should consider the following steps:
- Inject Capital: Increase share capital or secure external funding to build a stronger equity base, providing a cushion for operating expenses and growth.
- Develop Assets: Acquire essential operational assets or tools to enable productive business activities, improving capacity to generate revenue.
- Build Working Capital: Increase current assets such as cash or receivables to cover short-term liabilities and support smooth operations.
- Operational Scaling: Grow the workforce and business activities gradually to improve turnover and profitability, addressing the underlying cause of minimal financial activity.
- Financial Record-Keeping: Maintain detailed and timely accounting records to track performance, enabling better financial management and strategic planning.
- Explore Credit Opportunities: Once stable, consider developing supplier or bank credit lines to improve liquidity flexibility.
These interventions are akin to "treatment" steps to strengthen the company’s financial "immune system," enabling it to recover from its current fragile state and build resilience against future challenges.
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