Company Number: 13019039

Analysis Date: 2025-07-20 14:38 UTC

1. Credit Opinion: APPROVE
   Wright Things Limited demonstrates a stable and improving financial position over the last three years with consistent growth in net current assets and shareholders' funds. The company’s current liabilities are well covered by current assets, indicating a solid ability to meet short-term obligations. There is no indication of financial distress or adverse director conduct, and the company remains active with timely filing of accounts and returns. However, the company is very small with limited capital (£10 share capital) and only one employee, so credit limits should be conservative to match the scale and risk profile.

2. Financial Strength
   The balance sheet shows healthy net current assets of £73,320 as of 31 March 2024, up from £54,032 in 2021. Shareholders’ funds have increased steadily to £73,320, reflecting retained earnings growth. The company’s current assets (£159,830) predominantly comprise debtors (£123,552) and cash (£36,278), while current liabilities stand at £86,510. The modest bank loan balance (£11,858) compared to cash reserves supports financial flexibility. Overall, the company displays prudent financial stewardship with no long-term liabilities and a positive equity position.

3. Cash Flow Assessment
   The cash position is moderate at £36,278 and relatively stable compared to prior years. Debtors represent a significant portion of current assets, so the company’s cash flow depends on timely collection of receivables. Current liabilities, including bank loans and trade creditors, are covered comfortably by cash and working capital. There is no evidence of liquidity strain. The company has maintained positive working capital and appears capable of meeting its short-term financial commitments without reliance on external funding beyond a small overdraft facility.

4. Monitoring Points

• Receivables Management: Monitor debtor aging and collection effectiveness to ensure cash flow remains healthy.
• Profitability Trends: As no detailed profit and loss data is provided, future filings should be reviewed to confirm sustainable profit margins and earnings growth.
• Credit Facility Usage: Track bank loan and overdraft balances to avoid overleveraging given the company’s small size.
• Business Scale: Watch for any significant changes in business size or complexity that could affect risk exposure.
• Director Conduct: Continue to verify no adverse changes in director status or company compliance filings.