WOLF PACK FOOD SOLUTIONS LTD

Executive Summary

Wolf Pack Food Solutions Ltd is currently solvent but experiences persistent liquidity challenges, reflected in negative working capital and a very thin equity buffer. Immediate focus on improving cash flow and managing short-term liabilities is critical to avoid financial distress. Strengthening capital and refining operational efficiencies will enhance long-term financial health and sustainability.

WOLF PACK FOOD SOLUTIONS LTD - Analysis Report

Company Number: 13106883

Analysis Date: 2025-07-20 14:10 UTC

Financial Health Assessment for WOLF PACK FOOD SOLUTIONS LTD (As of 31 December 2024)

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1. Financial Health Score: C

Explanation:
The company exhibits some concerning signs of financial strain, particularly in its working capital position, but it remains solvent with positive shareholder funds. The score C reflects a borderline healthy state but with symptoms that require attention to avoid further deterioration.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Fixed Assets	£1,867	Very low investment in long-term assets, typical for a micro entity; manageable at this scale.
Current Assets	£20,368	Includes cash and receivables; relatively small pool of liquid assets.
Current Liabilities	£22,049	Slightly exceeds current assets, indicating short-term obligations outweigh liquid resources.
Net Current Assets (Working Capital)	-£1,681	Negative working capital — a symptom of liquidity stress, signaling potential cash flow issues.
Total Assets Less Current Liabilities	£186	Barely positive after covering short-term debts, indicating tight financial cushioning.
Shareholders’ Funds (Equity)	£186	Very low net worth, but still positive, showing the company is technically solvent.
Share Capital	£2	Minimal capital base, typical for a micro private limited company.
Employee Count	1	Very small workforce, low overhead but limited operational capacity.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity Symptoms: The company displays a persistent symptom of liquidity distress with negative net current assets for the last several years. This means that short-term liabilities consistently exceed short-term assets, implying difficulty in meeting immediate obligations without resorting to additional borrowing or asset sales.

• Solvency Status: Despite liquidity issues, the company remains solvent with positive shareholders' funds, though these have shrunk significantly from £5,954 in 2020 to just £186 in 2024. This indicates either accumulated losses or capital withdrawals eroding the financial cushion.

• Asset Base: The fixed asset base is minimal and declining slightly, which could suggest limited investment in growth or operational capacity, or disposal of assets to generate cash.

• Growth and Scale: Given the micro account category, a low capital base and minimal employee count are expected, but the financial tightness suggests the company operates on very thin margins or is in a start-up/early growth phase struggling to scale profitably.

• Filing and Compliance: Accounts and returns are up to date with no overdue filings, indicating good compliance and governance practices.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Working Capital Management:

  • Accelerate collection of receivables and manage payables to reduce the negative working capital gap.
  • Consider negotiating longer payment terms with suppliers and shorter terms with customers if possible.

• Enhance Cash Flow Monitoring:

  • Establish a rolling cash flow forecast to anticipate liquidity shortfalls and plan financing accordingly.
  • Maintain a cash reserve to buffer against short-term shocks.

• Review Cost Structure:

  • With only one employee, the company should review operational expenses and seek efficiencies or outsource non-core functions to reduce fixed costs.

• Capital Injection:

  • Explore opportunities for additional equity funding or shareholder loans to strengthen the net asset position and provide a cushion for growth investments.

• Strategic Growth Focus:

  • Assess the business model and market positioning in the professional and management consultancy sectors (SIC codes 74909, 70229) to identify profitable niches and scalable services.

• Regular Financial Reviews:

  • Implement periodic financial health diagnostics to detect early warning signs and respond proactively.

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Medical Analogy Summary

In medical terms, Wolf Pack Food Solutions Ltd shows signs of financial stress akin to a patient with low blood pressure — the company’s liquidity ("blood flow") is insufficient to fully meet short-term demands, although vital organs (solvency and equity) are still functioning. Without intervention to improve cash flow and capital, the risk of "collapse" (insolvency or forced restructuring) increases. However, with careful management and financial "treatment," the business can stabilize and regain strength.

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