FLYWALK LTD
Company number 05812076 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Assessment: Flywalk Ltd
Financial Health Score: B
Grade: B — Satisfactory with cautionary indicators
Flywalk Ltd is a solvent, active private limited company with a strengthening equity base and up-to-date statutory filings. However, its cash reserves have fallen sharply while inventory and short-term creditors have risen, indicating liquidity strain that requires prompt attention. Think of the balance sheet as having a strong skeletal structure but poor circulation.
Key Vital Signs
| Metric | Latest Position (2025) | Prior Year (2024) | Interpretation |
|---|---|---|---|
| Net Assets / Shareholders' Funds | £845,394 | £745,652 | Strong and growing capital base. Equity increased by roughly £100k year-on-year. |
| Current Assets | £874,490 | £607,535 | Growth driven largely by a large build-up in stock. |
| Cash at Bank | £34,490 | £73,535 | Concerning. Cash has fallen by more than half in one year. |
| Stock / Inventory | £840,000 | £534,000 | A 57% increase; most current assets are tied up in goods rather than cash. |
| Creditors due within one year | £727,671 | £570,639 | Short-term obligations have risen by about 27%. |
| Net Current Assets | £146,819 | £36,896 | Positive working capital, but heavily dependent on converting stock to cash. |
| Tangible Fixed Assets | £703,575 | £715,256 | Stable asset base (property, plant and equipment). |
| Filing Compliance | No overdue filings | No overdue filings | Accounts and confirmation statements are up to date. Good regulatory health. |
Symptoms Analysis
The accounts show a company that is solvent but liquidity-constrained.
- Declining cash reserves: Cash at bank fell from £73,535 to £34,490. In medical terms, the company’s “circulation” is weakening even though its overall “body mass” (equity) is growing.
- Inventory build-up: Stock rose from £534,000 to £840,000. Unless this stock is sold quickly, it represents cash locked on shelves rather than available to pay suppliers or meet operating costs.
- Rising short-term creditors: Amounts owed within one year increased from £570,639 to £727,671. The company is taking on more short-term obligations at the same time its cash cushion is shrinking.
- Thin current ratio: Current assets cover current liabilities by only about 1.2 times. A ratio comfortably above 1.5 would provide a safer buffer.
- Equity growth: Retained earnings rose significantly, and net assets increased from £745,652 to £845,394. This suggests recent profitability, though part of the equity movement reflects a reclassification from revaluation reserve to retained earnings rather than new cash generation.
There are no symptoms of insolvency (such as negative net assets), but the trend in working capital is a warning sign.
Diagnosis
Condition: Solvent with tightening liquidity (working capital strain).
The company’s core structure is healthy: it is active, not in liquidation or administration, files on time, and holds a strong asset base with positive equity. However, it exhibits classic signs of working capital pressure—expanding stock holdings and short-term obligations faster than cash is being generated.
If the inventory can be converted into sales and cash, the position will improve. If cash continues to fall while creditors rise, the company could face difficulty meeting short-term commitments despite its positive net asset position.
Prognosis
Guarded but stable.
The outlook is positive if management acts quickly to improve cash conversion. The underlying business has built substantial equity over recent years and owns tangible assets that provide a safety net. Without intervention, however, the downward trend in cash leaves little room for unexpected costs or sales slowdowns.
Recommendations
- Introduce a 13-week cash flow forecast. Monitor weekly inflows and outflows to anticipate shortfalls before they occur.
- Review inventory levels. Identify slow-moving stock and consider promotions or supplier returns to free up cash. Aim to reduce the stock-to-cash ratio.
- Manage creditor terms. Negotiate extended payment terms with key suppliers and prioritise payments based on cash availability rather than invoice date alone.
- Consider short-term financing. A revolving credit facility or invoice discounting could bridge the gap between stock purchases and customer payments.
- Set a liquidity target. Aim to restore cash reserves to at least three months of operating costs and improve the current ratio toward 1.5 or higher.
- Maintain filing discipline. Continue submitting accounts and confirmation statements on time to avoid penalties and preserve creditworthiness.