Company Number: 12920818

Analysis Date: 2025-07-20 14:17 UTC

1. Credit Opinion: DECLINE
   WRISMAT LIMITED demonstrates very limited financial resources with net current assets of only £19 as of the latest accounts (31 October 2023). The drastic decline from £26,481 net current assets in the previous year to just £19 signals a severe deterioration in liquidity and working capital management. This raises significant concerns about the company’s ability to meet its short-term obligations and service any new credit facilities. Given the micro entity status and absence of audit, the financial data may be less scrutinized, adding to the credit risk. The minimal equity base (£19) and very low share capital (£10) provide little cushion against adverse events. Without evidence of turnaround plans or improved cash flows, the company’s creditworthiness is very weak.

2. Financial Strength:
   The balance sheet is extremely weak. Current assets (£13,449) barely cover current liabilities (£13,430), resulting in virtually no working capital. Total net assets declined sharply from £26,481 in 2022 to £19 in 2023, indicating erosion of shareholder funds. The company has no fixed assets disclosed, relying entirely on current assets. Such a thin capital structure is inadequate to absorb losses or finance growth. The company’s micro classification and single employee status suggest a very small operational scale, which also limits financial resilience.

3. Cash Flow Assessment:
   The near break-even net current asset position points to critical liquidity constraints. The drop in current assets from £33,601 to £13,449 year-on-year likely reflects cash burn or slow collection of receivables. Current liabilities almost equal current assets, meaning cash tied up in operations is insufficient for liabilities coming due. The lack of detailed cash flow statements precludes precise analysis but the balance sheet trend suggests cash flow pressures. Working capital is effectively non-existent, increasing the risk of payment delays or defaults.

4. Monitoring Points:

• Watch for updated accounts to assess if liquidity improves or deteriorates further.
• Monitor cash flow statements if provided, especially operating cash flow trends.
• Track receivables and payables aging to detect collection or payment issues.
• Observe any changes in director or shareholder funding injections to bolster finances.
• Review any trading or strategic updates indicating business turnaround or decline.
• Confirm no emerging creditor disputes or enforcement actions given the tight liquidity.