WOODSTOCK HOMES (THE PERRINGS) LIMITED

Executive Summary

Woodstock Homes (The Perrings) Limited shows improving net assets and positive working capital, reflecting growing financial stability since inception. However, limited cash reserves and a high stock concentration require careful liquidity monitoring. Conditional credit approval is advised, contingent on ongoing oversight of cash flow and operational execution within the construction sector’s cyclical environment.

WOODSTOCK HOMES (THE PERRINGS) LIMITED - Analysis Report

Company Number: 13620739

Analysis Date: 2025-07-20 12:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Woodstock Homes (The Perrings) Limited exhibits modest but improving financial strength, with positive net current assets and net assets increasing significantly from £301 to £405,643 over one year. The company operates in the construction of domestic buildings, a sector sensitive to economic cycles, and is a subsidiary fully controlled by Woodstock Homes (Group) Limited. The absence of employees and limited cash reserves suggest a lean operational structure likely relying on group support or project-specific financing. Credit approval is recommended with conditions, notably requiring regular monitoring of cash flow, debtor collections, and timely filing of accounts to ensure ongoing financial viability.

2. Financial Strength:
   The latest balance sheet as of 30 September 2023 shows total current assets of approximately £2.55 million, primarily composed of stock (£2.54 million), with minimal debtors and cash (£8,126). Current liabilities stand at about £2.14 million, resulting in net current assets of £405,643, a significant improvement from the prior year’s near break-even position. Shareholders’ funds have grown from £301 to £405,643, indicating that retained earnings or capital injections have strengthened equity. No fixed assets are reported, and the company has no employees, implying a possible project-based or asset-light business model. Overall, the balance sheet shows adequate working capital but limited liquid assets.

3. Cash Flow Assessment:
   Cash on hand is very low (£8,126), which could constrain the company’s ability to meet immediate short-term obligations without additional liquidity support. The large stock balance ties up most current assets, which could delay cash conversion cycles if sales or completions are slow. Debtors are minimal, suggesting limited credit sales or efficient collection. The company’s current liabilities are substantial but covered by current assets, providing a buffer. However, the lack of detailed profit & loss data limits full cash flow analysis. Close attention is needed on cash flow forecasts and working capital management, especially in relation to stock turnover and creditor payment terms.

4. Monitoring Points:

• Liquidity levels and cash flow adequacy, especially given low cash balances.
• Stock turnover rates and realizability of inventory at reported values.
• Timely filing of accounts and confirmation statements to maintain regulatory compliance.
• Any changes in director appointments or group support arrangements.
• Developments in the construction market affecting demand and project execution.
• Profitability trends once P&L details become available for analysis.