WML PROPERTIES LTD

Executive Summary

WML Properties Ltd is a start-up real estate company with negative equity and working capital deficits in its first financial year. The absence of trading history and limited management experience raise concerns about its ability to meet credit obligations currently. Approval of credit facilities would be premature until financial performance improves and liquidity stabilizes.

WML PROPERTIES LTD - Analysis Report

Company Number: 14673792

Analysis Date: 2025-07-20 18:54 UTC

1. Credit Opinion: DECLINE

WML Properties Ltd is a newly incorporated micro-entity in the real estate sector with its first financial statements for the period ending February 2024. The company’s net assets and shareholders’ funds are negative (£-7,926), indicating an initial deficit position. Current liabilities slightly exceed current assets, resulting in a negative working capital position of approximately £7,086. The directors are both unemployed and have no other publicly known business experience, which raises concerns about management strength. Given the absence of trading history, negative equity, and working capital deficit, the company currently lacks the financial resilience and creditworthiness needed to service debt or commercial obligations reliably.

2. Financial Strength:

The balance sheet shows current assets of £281,120 against current liabilities of £288,206, yielding a negative net current asset position. No fixed assets or long-term liabilities are reported, and the overall net asset value is negative. This suggests the company has funded start-up costs or initial operating expenses through short-term liabilities, leading to a fragile financial foundation. The absence of retained earnings or reserves and the negative equity position are typical for a start-up but mean the company has no buffer against adverse events.

3. Cash Flow Assessment:

The accounts do not provide detailed cash flow statements, but the working capital deficit and negative net assets imply constrained liquidity. The company’s current liabilities exceed current assets by about £7,000, indicating potential difficulties in meeting short-term obligations without additional financing or cash injections from shareholders. There is no indication of operating cash inflows as the company is in its first year and likely has limited revenue streams. Cash flow risk is elevated.

4. Monitoring Points:

• Improvement in net assets and working capital position in the next 12 months.
• Evidence of revenue generation and positive operating cash flow.
• Timely filing of future accounts and confirmation statements.
• Management’s ability to strengthen financial controls and secure stable funding.
• Any changes in director status or appointment of experienced financial management.