WOODBOURNE WARDROBES LTD

Executive Summary

Woodbourne Wardrobes Ltd is a newly established micro-entity with a sound initial financial position, positive working capital, and no adverse director records or compliance issues. The company demonstrates adequate liquidity and balance sheet strength for its size and stage, supporting a low-risk credit profile. Ongoing monitoring of trading performance and liquidity metrics is advised as the business develops.

WOODBOURNE WARDROBES LTD - Analysis Report

Company Number: 14861836

Analysis Date: 2025-07-20 17:19 UTC

1. Credit Opinion: APPROVE with low credit risk

Woodbourne Wardrobes Ltd is a recently incorporated micro-entity (incorporated May 2023) operating in joinery installation. Despite its short trading history, the company demonstrates a positive net asset position and net current assets, indicating initial financial stability. The directors have no adverse records, and the business shows prudent financial stewardship with no overdue filings or audit exemptions typical for micro companies. Given the small scale, limited trading history, and modest asset base, credit exposure should be limited and monitored, but overall the company appears capable of meeting its short-term obligations.

2. Financial Strength:

• Total fixed assets are minimal (£706), consistent with a start-up trading business.
• Current assets of £21,198 against current liabilities of £13,343 yield net current assets (working capital) of £7,855, reflecting sufficient liquidity.
• Accruals and deferred income are low (£900), resulting in net assets of £7,661.
• Shareholders’ funds equal net assets, indicating no external debt or long-term liabilities on the balance sheet.
• The company operates with two employees, which aligns with its micro-entity status.
• Overall, the balance sheet exhibits a conservative financial position with positive equity and manageable liabilities.

3. Cash Flow Assessment:

• Current assets (mainly cash and debtors) exceed current liabilities by a comfortable margin, suggesting adequate working capital to cover short-term debts.
• No indication of overdrafts or external borrowings reduces immediate liquidity risk.
• The modest size and short trading period limit detailed cash flow analysis, but the net current asset position is a positive indicator.
• Monitoring future cash generation and debtor collections will be important as the company grows.

4. Monitoring Points:

• Track turnover and profitability trends as the company matures beyond its first year.
• Watch for any increase in liabilities or reduction in net current assets that could impact liquidity.
• Ensure timely filing of accounts and confirmation statements to avoid compliance risks.
• Review directors’ conduct and any changes in ownership or control that might affect governance.
• Monitor industry conditions in joinery installation for potential market risks.