WRIGHTLABS LTD

Executive Summary

WrightLabs Ltd is a micro-entity at an early stage with a modest but solvent balance sheet and positive working capital. The company’s financial health currently depends on director funding and prudent management of limited resources. Approve credit facilities cautiously with close monitoring of financial performance and liquidity as the business develops.

WRIGHTLABS LTD - Analysis Report

Company Number: 14729467

Analysis Date: 2025-07-20 16:08 UTC

1. Credit Opinion: APPROVE with caution. WrightLabs Ltd is a newly incorporated micro-entity (since March 2023) with limited financial history. The company shows positive net current assets and net assets, indicating an initial capital buffer. The sole director and controlling shareholder, Dr. Daniel Wright, has provided unsecured, interest-free loans to the company, which demonstrates commitment but also reliance on director funding. Given the early stage of operations and small scale, credit exposure should be limited and monitored closely.

2. Financial Strength: The balance sheet as at 31 March 2024 shows current assets of £9,903 against current liabilities of £3,333, resulting in net current assets of £6,570. Total net assets stand at £5,945, fully represented by shareholders’ funds, indicating no external debt. The company has no fixed assets and minimal accruals (£625). The financial structure is simple and solvent, but the absolute size is small, typical of a micro-entity start-up.

3. Cash Flow Assessment: The company’s liquidity position appears adequate with positive net current assets and low short-term liabilities. However, there is no detailed cash flow statement available. The director’s loan account shows an outstanding balance of £8,376, suggesting the business depends on director advances for working capital. The unsecured and interest-free nature of this loan limits immediate financial risk but reflects a need for ongoing internal financing. The working capital position should be reassessed as trading progresses.

4. Monitoring Points:

• Track subsequent filing of accounts to verify continued solvency and growth.
• Monitor director loan balances and repayment terms to ensure no undue reliance.
• Assess turnover and profitability trends as operations scale.
• Watch for any late filings or changes in director status or control.
• Evaluate cash flow generation once trading data matures beyond start-up phase.