WRAP FILMS LTD

Executive Summary

Wrap Films Ltd exhibits a strengthening financial profile with increasing net assets and strong liquidity, supported by sound management under a sole director and owner. The company demonstrates clear capacity to meet its short-term liabilities and sustain operational growth. Ongoing monitoring of asset investments and tax obligations is advised to maintain creditworthiness.

WRAP FILMS LTD - Analysis Report

Company Number: 14488325

Analysis Date: 2025-07-29 13:06 UTC

1. Credit Opinion: APPROVE - Wrap Films Ltd demonstrates a solid financial position for a recently incorporated small private company. The company shows increasing net assets and net current assets over the last two years, indicating growth and improving financial stability. The director, who is also the sole significant controller, appears to maintain sound financial stewardship with no signs of distress or overdue filings. The company’s liquidity position is strong, and current liabilities are well covered by current assets and cash reserves. Given these factors, the company is assessed as capable of meeting its debt obligations.

2. Financial Strength: The balance sheet shows net assets increasing from £35,080 in 2023 to £52,844 in 2024, reflecting retained earnings and reinvestment in tangible fixed assets. Tangible fixed assets rose substantially, suggesting investment in operational capacity. Net current assets have improved from £16,210 to £21,950, driven by increased cash balances (£41,207 in 2024 vs £26,581 in 2023). Current liabilities remain moderate at £22,311, primarily taxation and social security costs, within manageable limits relative to assets. Overall, the company’s equity base is sufficient, with shareholders’ funds representing 100% of net assets.

3. Cash Flow Assessment: Cash on hand and at bank covers current liabilities nearly twice over, implying strong liquidity and good working capital management. Debtors have slightly decreased, which could indicate effective credit control or timing differences but remain modest in size (£3,054). The company’s working capital position is healthy, supporting operational needs without apparent strain. No loans or borrowings are noted, indicating minimal financial leverage and low repayment risk at this stage.

4. Monitoring Points:

• Continued maintenance of positive net current assets and liquidity ratios.
• Monitor growth in fixed assets to ensure investments generate sufficient returns.
• Watch taxation and social security liabilities to avoid cash flow pressure.
• Track turnover and profitability trends as the company matures beyond its start-up phase.
• Keep oversight on director’s financial management and any changes in control or filings status.