Company Number: 13885532

Analysis Date: 2025-07-29 14:15 UTC

1. Credit Opinion: DECLINE
   Wrakeworth Limited presents a weak credit profile. The company has negative net assets and shareholders' funds, reflecting an equity deficit. Current liabilities exceed current assets resulting in negative working capital, which raises liquidity concerns. The company relies heavily on long-term creditors and director loans, indicating dependency on related parties and external creditors for funding. There is no evidence of profitability or operational cash flow generation, and the company has no employees, suggesting minimal business activity or scale. Given these factors and the short trading history since incorporation in 2022, the risk of default is elevated.

2. Financial Strength:
   The balance sheet shows fixed tangible assets around £393k, but current assets are negligible (£100). Current liabilities stand at £384k (including director loans and accruals), resulting in a net current liability of approximately £10k. Long-term creditors total £384k, pushing total liabilities well above assets. Shareholders’ funds remain negative at approximately £1.85k, worsening slightly from the prior year’s deficit. The company’s financial structure is weak, with no retained earnings and negative equity. This indicates undercapitalisation and a fragile financial position.

3. Cash Flow Assessment:
   Current asset levels are insufficient to cover short-term obligations, and the company has no reported cash or cash equivalents. The director’s loan account shows minor fluctuations but remains a creditor rather than a funding source via equity injection. No turnover or profit figures are disclosed, and average employee count is nil, suggesting limited or no operating cash inflows. Reliance on creditor financing and absence of liquidity buffers means the company may struggle to meet immediate cash commitments.

4. Monitoring Points:

• Working capital trends and improvements in current asset levels
• Movements in director loans and creditor balances for signs of increasing financial support or strain
• Any filing of profit and loss accounts in future periods to assess operational performance
• Changes in asset valuations or disposal activities affecting balance sheet strength
• Timely filing of accounts and confirmation statements to detect governance or reporting risks