WP CONCEPTS LTD

Executive Summary

WP Concepts Ltd is a micro-entity with limited operating history and minimal financial resources. While current liquidity covers short-term liabilities, the company’s financial position is fragile, warranting conditional credit approval with ongoing monitoring. Emphasis should be on cash flow management and business growth to support future credit facilities.

WP CONCEPTS LTD - Analysis Report

Company Number: 15047664

Analysis Date: 2025-07-29 14:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   WP Concepts Ltd is a newly incorporated private limited company operating in electrical installation services. The company’s financials show a very modest net asset base (£319) and minimal working capital (£319). The short trading history limits our ability to assess trends, but current liquidity appears just sufficient to cover short-term liabilities. Credit approval should be conditional on continued monitoring of cash flow and the company’s ability to generate stable revenue, as the current scale and capitalization are minimal.

2. Financial Strength:
   The balance sheet as of 31 August 2024 reflects total current assets of £11,649 (all cash) against current liabilities of £11,330, yielding a marginal net current asset position of £319. There are no fixed or long-term assets. Shareholders’ funds are also nominal at £319, supported by minimal called-up share capital of £2 and retained earnings. The financial position is fragile, with limited buffer to absorb unexpected expenses or delays in receivables. The company qualifies as a micro-entity under UK thresholds, which aligns with its current financial scale.

3. Cash Flow Assessment:
   The company’s cash position is low but positive, with cash entirely covering current liabilities. This suggests tight working capital management but no immediate liquidity risk. Given the nature of electrical installation, cash generation depends heavily on contract execution and timely payments. The absence of accounts receivable and inventory indicates either early stage of trading or effective billing and collection practices. Close attention should be paid to cash flow forecasts and creditor payments to prevent liquidity strain.

4. Monitoring Points:

• Revenue growth and stability in turnover as new trading history develops.
• Consistency of positive net current assets and avoidance of negative working capital.
• Management of creditor balances to avoid overdue payments.
• Development of fixed assets or capital investment that could strengthen the balance sheet.
• Directors’ conduct and ongoing compliance with filing deadlines (currently up to date).
• Any changes in shareholder structure or significant control that may impact governance or risk profile.