W.R JOINERY LTD

Executive Summary

W.R Joinery Ltd has demonstrated a positive turnaround in net assets within its first two years, but remains constrained by working capital deficits and limited cash reserves. Conditional credit approval is recommended, subject to close monitoring of liquidity and operational cash flow. The company’s financial trajectory is improving but still requires careful oversight to ensure sustained creditworthiness.

W.R JOINERY LTD - Analysis Report

Company Number: SC726983

Analysis Date: 2025-07-20 16:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   W.R Joinery Ltd is a recently incorporated private limited company engaged in joinery installation. The company has shown a significant turnaround in financial position from a negative net asset base of approximately £8,800 in the prior year to a positive shareholders' fund of £15,065 as of 31 March 2024. However, current liabilities still exceed current assets, resulting in a working capital deficit of £11,361, which raises liquidity concerns. The company’s ability to meet short-term obligations depends on improving cash flow and working capital management. Given the company’s early stage and improving but still fragile financials, credit approval should be conditional on monitoring cash flow closely and obtaining updated management forecasts.

2. Financial Strength:
   The balance sheet shows tangible fixed assets valued at £26,426, primarily plant and machinery, which supports operational capacity. Shareholders’ funds have improved materially, reflecting recent profitability or capital injections. However, the company remains undercapitalized in terms of liquid assets, with cash balances low at £4,778 and current liabilities at £16,139. The absence of long-term debt indicates limited leverage but also limited financial flexibility. The company’s net current liabilities have improved from a large deficit the previous year, but the working capital deficit remains a risk factor.

3. Cash Flow Assessment:
   Cash on hand has increased from £669 to £4,778, indicating improving liquidity, but this is still modest relative to current liabilities. The company’s working capital deficit indicates that it is reliant on ongoing cash inflows or external financing to meet short-term creditors. No employees are currently reported, suggesting a lean cost base but also potential dependency on subcontractors or owner-director labor. Without detailed profit and loss data, it is difficult to fully assess operational cash generation, but the positive movement in net assets suggests some degree of profitability or capital contribution.

4. Monitoring Points:

• Working capital and cash flow trends over the next 12 months to ensure the company can meet short-term obligations.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.
• Any increase in trade or other creditors which could indicate deteriorating liquidity.
• Profitability trends and margin stability in the joinery installation sector.
• Management’s capacity to grow the business while maintaining financial discipline.