WYNN PROPERTY SOURCING LTD

Executive Summary

WYNN PROPERTY SOURCING LTD is currently in a financially fragile state with negative net assets and working capital indicating liquidity challenges. While recent figures show some improvement, the company remains dependent on director support to continue as a going concern. Prompt actions to improve cash flow, reduce liabilities, and strengthen equity are essential to restore financial health and ensure long-term viability.

WYNN PROPERTY SOURCING LTD - Analysis Report

Company Number: 13118549

Analysis Date: 2025-07-20 14:08 UTC

Financial Health Assessment of WYNN PROPERTY SOURCING LTD

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1. Financial Health Score: D

Explanation:
WYNN PROPERTY SOURCING LTD exhibits signs of financial distress. The company’s net current assets have turned negative in the latest financial year, and net assets have declined from a positive £10,101 in previous years to a negative £613. This signals a weakening balance sheet and potential liquidity issues. Given the small scale (Micro entity) and reliance on director support, the financial health warrants concern.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	3,103	27	Significant increase in short-term assets, potentially cash or receivables
Current Liabilities	3,716	10,128	Reduction in short-term debts is positive, but liabilities still outstrip assets
Net Current Assets	-613	-10,101	Negative working capital signals liquidity strain — paying day-to-day expenses may be challenging
Net Assets (Shareholders Funds)	-613	-10,101	Negative equity indicates accumulated losses or liabilities exceeding assets
Share Capital	1.00	1.00	Nominal capital, typical of micro entities, does not provide financial cushion

Additional Observations:

• No employees reported; operations likely minimal or director-led.
• Company accounts prepared under micro-entity FRS 105 standard, limiting detail disclosure.
• The director has provided ongoing support, vital for going concern status.

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3. Diagnosis

The financial "vital signs" indicate symptoms of distress:

• Negative Net Assets: The company has liabilities exceeding its assets, a classic symptom of balance sheet weakness that can threaten solvency if unaddressed.
• Negative Working Capital: More immediate liabilities than current assets suggest potential cash flow problems—difficulty meeting short-term obligations.
• Recent Improvement Trend: The company has improved its current assets and reduced liabilities compared to prior years, but this recovery has not yet restored positive net assets.
• Reliance on Director Support: The accounts explicitly state the company’s going concern depends on the director’s continued support, indicating external financial backing is critical.

In medical analogy terms, the business’s financial “pulse” is weak but shows signs of stabilisation, yet it remains in a fragile state requiring intervention.

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4. Recommendations

To improve financial wellness and ensure sustainable operations, the company should consider the following actions:

• Enhance Liquidity Management: Focus on increasing readily available cash or liquid assets to cover current liabilities and improve working capital.
• Debt Restructuring or Reduction: Negotiate with creditors to extend payment terms or reduce liabilities where possible, alleviating short-term pressure.
• Capital Injection: Consider additional equity investment or director loans to restore positive net assets and strengthen the balance sheet.
• Revenue Generation: Explore strategies to increase turnover, such as expanding client base or service offerings, to build retained earnings and reduce reliance on director support.
• Cost Control: Maintain tight control on expenses, especially given no employees and small scale, to preserve cash.
• Regular Financial Monitoring: Implement monthly cash flow forecasts and financial reviews to detect early signs of distress and act proactively.

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