Company Number: 13190521

Analysis Date: 2025-07-19 12:43 UTC

1. Risk Rating: HIGH
   The company exhibits a high solvency risk due to persistent negative net assets and net liabilities, indicating it is technically insolvent. Additionally, the significant current liabilities compared to minimal current assets raise liquidity concerns.

2. Key Concerns:

• Negative Net Assets: The company has reported net liabilities (£-11,110 as of 31 March 2024), showing that total liabilities exceed total assets, which is a fundamental solvency issue.
• Poor Working Capital Position: Net current assets are deeply negative (approximately £-121,000), reflecting an inability to cover short-term obligations with available current assets.
• Large Non-Current Liabilities: The company carries considerable long-term liabilities (£280,488), which may be debt or similar obligations, without corresponding equity or cash reserves to support them.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets remain constant at £390,840, suggesting the company has tangible asset backing, presumably property or real estate given the SIC classification.
• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, indicating sound regulatory compliance and governance in this regard.
• Small Employee Base: With only 2 employees, operational overheads may be relatively low, which could support cost control if cash flow improves.

4. Due Diligence Notes:

• Nature of Long-Term Liabilities: Investigate the composition of the £280,488 liabilities due after more than one year to assess repayment terms, interest rates, and covenant risk.
• Cash Flow and Income Generation: Request detailed cash flow statements and profit & loss accounts to understand operational cash generation and whether the company is capable of servicing its debts.
• Asset Valuation: Confirm the valuation and liquidity of fixed assets to evaluate their adequacy as collateral or for sale to improve solvency.
• Directors’ Plans: Obtain insight into management’s strategy to address negative equity and working capital deficits, including any planned capital injections or restructuring.

Executive Summary:
Worrall Estates Limited currently faces significant solvency and liquidity challenges as evidenced by negative net assets and substantial current and long-term liabilities exceeding assets. While the company maintains compliance with statutory filings and has a tangible fixed asset base, the financial position reflects a high risk for investors without further clarification on debt obligations and cash flow viability. Immediate due diligence on liabilities and operational cash generation is recommended to assess sustainability.