WOODVALE GALLOWHILL LIMITED

Executive Summary

Woodvale Gallowhill Limited exhibits improving financial strength and liquidity, supported by sound management and clean statutory compliance. The company is suitable for credit approval at a conservative limit, with attention to its micro-entity scale and cash flow monitoring to mitigate operational risks. Continued positive financial trends will support increased credit capacity in the future.

WOODVALE GALLOWHILL LIMITED - Analysis Report

Company Number: SC688718

Analysis Date: 2025-07-29 20:44 UTC

1. Credit Opinion: APPROVE with close monitoring.
   Woodvale Gallowhill Limited is a micro-entity that has demonstrated improving net current assets and shareholders’ funds over the past three years, indicating strengthening financial footing. The company is active, with no overdue filings, and is led by a director who is also a qualified accountant, suggesting competent financial management. Given its micro scale and modest liabilities, the risk profile is low. However, limited fixed assets and the very small scale of operations imply limited financial resilience to adverse conditions. Credit facilities should be approved with prudent limits and periodic review to guard against volatility in cash flow or unexpected liabilities.

2. Financial Strength:
   The balance sheet shows consistent growth in net current assets from £1,938 in 2021 to £31,256 in 2024, driven by increased current assets and controlled current liabilities. Fixed assets are negligible, indicating minimal capital investment or reliance on tangible assets. Shareholders’ funds have increased steadily to £31,256, reflecting retained earnings or capital injections. Overall, the company maintains a positive net asset position, signaling sound financial stability for a micro business. The absence of long-term liabilities reduces gearing risk.

3. Cash Flow Assessment:
   Current assets notably increased to £74,677 in 2024, more than doubling from the previous year, while current liabilities also rose but at a lower rate. This results in a healthy working capital surplus (£31,256), suggesting the company has adequate liquidity to meet short-term obligations. The growth in current assets likely includes cash and receivables, providing operational flexibility. However, with only one employee and limited scale, cash flow volatility risk exists, so ongoing monitoring of debtor collections and creditor payments is advisable.

4. Monitoring Points:

• Continued growth in net current assets and shareholders’ funds to confirm financial trajectory.
• Maintenance of positive working capital and liquidity ratios, given the small asset base.
• Cash flow stability, particularly accounts receivable collection and payment cycle management.
• Any changes in director or management, as the business is highly dependent on the current director.
• Filing compliance remains critical to avoid penalties and preserve creditworthiness.