COMMUNITY OF THE WELL LTD

Executive Summary

COMMUNITY OF THE WELL LTD shows persistent financial distress characterized by negative net assets and significant working capital deficits, raising high solvency and liquidity risks. The company maintains compliance with filing requirements and stable governance, but operational viability appears limited given the absence of employees and minimal assets. Careful review of financial support mechanisms and cash flows is recommended to better understand ongoing sustainability.

COMMUNITY OF THE WELL LTD - Analysis Report

Company Number: 13436930

Analysis Date: 2025-07-29 16:41 UTC

1. Risk Rating: HIGH
   The company exhibits persistent net liabilities and negative shareholders’ funds over multiple years, indicating ongoing solvency concerns. The negative working capital position further heightens liquidity risk.

2. Key Concerns:

• Negative Net Assets: The company’s shareholders’ funds are consistently negative, deteriorating from -£1,129 in 2021 to -£3,083 in 2024, signaling accumulated losses and potential insolvency risk.
• Working Capital Deficit: Current liabilities significantly exceed current assets (£8,954 vs £157 in 2024), indicating the company may struggle to meet short-term obligations as they fall due.
• No Reported Employees or Audit: The company reports zero employees and is exempt from audit under micro-entity provisions, limiting transparency on operational scale and financial health.

3. Positive Indicators:

• Current Filing Compliance: All statutory filings including accounts and confirmation statements are up to date, demonstrating good regulatory compliance.
• Stable Management: The two directors have been in position since incorporation with no adverse records mentioned, providing continuity in governance.
• Clear Business Activity: The company's SIC code (94910) aligns with its stated religious activities, reducing classification risk.

4. Due Diligence Notes:

• Investigate the source of ongoing losses and whether the company has access to financial support (e.g., guarantors or donations common in non-share capital entities).
• Review cash flow statements or bank statements to assess liquidity beyond balance sheet figures, particularly given the low current assets and high current liabilities.
• Confirm any contingent liabilities or off-balance sheet obligations that could exacerbate solvency risk.
• Assess the business model sustainability, relying on non-trading or charitable support given no employees and minimal fixed assets.
• Verify director backgrounds for any reputational risks despite no formal disqualifications noted.