WYLLIE CONTRACTS LTD

Executive Summary

Wyllie Contracts Ltd is a nascent micro-entity with improving but modest financial strength, positive net assets, and adequate liquidity supported by director advances. Given its limited trading history and small scale, credit approval is recommended with conditions including ongoing financial monitoring and possible security. The company demonstrates early signs of stability but requires close oversight to manage working capital and tax obligations effectively.

WYLLIE CONTRACTS LTD - Analysis Report

Company Number: 14071043

Analysis Date: 2025-07-29 20:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Wyllie Contracts Ltd is a very young company (incorporated 2022) operating in vehicle maintenance and repair. The financial profile shows modest but improving net assets and working capital, suggesting some operational progress. However, the company remains very small, with limited fixed assets and a single director/shareholder controlling 100% ownership. The director has loaned funds to the company, which could indicate reliance on related party funding. Given the company’s size, short trading history, and reliance on director advances, credit approval should be conditional on ongoing monitoring and possibly personal guarantees or security due to limited financial strength and cash buffers.

2. Financial Strength:

• Net assets increased from £943 (2023) to £1,349 (2024), reflecting retained profits and improved working capital.
• Fixed assets are minimal (£179 in 2024), showing low capital investment typical for service SMEs.
• Shareholders’ funds are positive but limited (£1,348), indicating a thin equity base.
• The company is classified as a micro entity, with small scale operations and limited balance sheet strength.
• Current liabilities increased (mainly taxation and social security) but remain covered by current assets, maintaining positive net current assets (£1,170).

3. Cash Flow Assessment:

• Cash at bank improved significantly from £3,944 (2023) to £5,135 (2024), indicating positive liquidity.
• Debtors increased to £1,218 from £294, which could affect cash collection periods; this should be monitored to ensure no undue credit risk.
• Current liabilities rose to £5,183, mostly tax-related, requiring regular cash flow management to meet obligations.
• The company has positive net current assets and appears capable of meeting short-term liabilities.
• Director loan advances (£1,218) are included in debtors, which supports liquidity but also signals dependence on related party funding.

4. Monitoring Points:

• Monitor trading performance and profitability trends to ensure the company can sustain and grow net assets.
• Watch debtor days and credit control effectiveness, as increasing receivables may strain cash flows.
• Track tax liabilities and ensure timely payments to avoid penalties and cash flow disruption.
• Review director loans and their impact on company liquidity and potential need for capital injection.
• Confirm continued operational activity and absence of adverse changes in company status or directorship.