WOODLAND CEMETERY LIMITED

Executive Summary

Woodland Cemetery Limited demonstrates sound liquidity and solvency with growing equity and no overdue filings, reflecting prudent financial management for a recently incorporated entity. However, limited operating history, concentrated ownership, and a sizeable debtor balance warrant further investigation to fully assess operational sustainability and credit risk. Overall, the company currently presents a low risk profile pending deeper due diligence on business fundamentals and debtor quality.

WOODLAND CEMETERY LIMITED - Analysis Report

Company Number: 13886464

Analysis Date: 2025-07-29 19:23 UTC

1. Risk Rating: LOW
   The company exhibits a strong net current asset position with substantial equity relative to liabilities. There are no overdue filings or signs of regulatory non-compliance. The financial statements show growing working capital and a positive equity base, indicating solvency and liquidity strength for its size and stage.

2. Key Concerns:

• Limited operating history: Incorporated in early 2022, Woodland Cemetery Limited has just under two years of financial data, which limits long-term operational stability assessment.
• Concentration of control: One individual (Nicholas Stokes) holds 75-100% of shares and voting rights, creating potential governance risk if succession or management changes occur.
• Debtor concentration: As of 2023 year-end, debtors comprise a large portion (£168k) of current assets, with no detailed breakdown available, raising questions about debtor quality and collectability.

3. Positive Indicators:

• Strong working capital position: Net current assets increased from £11k in 2022 to over £208k in 2023, signaling improved liquidity and ability to cover short-term obligations.
• Positive equity growth: Shareholders’ funds rose from £11k to £208k within one year, indicating capital injections and/or retained earnings accumulation.
• Compliance: No overdue accounts or confirmation statements; filings are up to date. The company benefits from small company exemption but has prepared accounts in accordance with FRS 102 and Companies Act 2006.
• Clear accounting policies and professional preparation: Financial statements prepared by a reputable accounting firm with transparent policies.

4. Due Diligence Notes:

• Investigate the nature and aging of trade and other debtors (£168k) to assess credit risk and cash flow reliability.
• Understand the revenue model, turnover trends, and profitability as profit and loss statements are not included in the accounts document.
• Review the capital structure and any related party transactions, especially those involving group undertakings, given amounts owed to/from group entities.
• Assess business plan and market positioning in the funeral services industry (SIC 96030), including competitive landscape and sustainability prospects.
• Confirm director and key management background and any related party relationships or conflicts given the significant control by one director.