Company Number: 13772776

Analysis Date: 2025-07-29 14:23 UTC

1. Credit Opinion: DECLINE
   CWAGENCY LTD shows a concerning negative net asset position (£-18,895 for FY 2023, worsening from £-13,710 in 2022). The company’s current liabilities significantly exceed its current assets, resulting in negative working capital and indicating potential liquidity distress. Despite being active since late 2021 and having a director with full control, the financials do not demonstrate sufficient capacity to meet short-term obligations or service additional debt. The company’s micro-entity scale and absence of profitability reporting further limit credit confidence. Without evidence of improved cash flow or capital injection, extending credit would be high risk.

2. Financial Strength:
   The balance sheet reveals a fragile financial position with net liabilities and negative shareholders' funds. Current liabilities (£24,347) exceed current assets (£5,452) by a large margin, producing net current liabilities of £18,895 as of November 2023. The deterioration compared to the previous year suggests worsening solvency. No fixed asset data is provided, implying limited tangible collateral. The company’s equity is negative, highlighting accumulated losses or funding shortfalls. Overall, financial strength is weak and not supportive of new lending.

3. Cash Flow Assessment:
   Limited current asset value and high short-term creditor obligations point to poor liquidity and working capital management. The drop in current assets from £17,082 in 2022 to £5,452 in 2023 is a red flag for cash or receivables availability. Negative net current assets indicate the company may struggle to pay creditors on time or finance ongoing operations without external support. The small employee base (3 in 2023) and lack of detailed profit & loss data restrict further cash flow analysis but do not offset liquidity concerns.

4. Monitoring Points:

• Track changes in current assets, especially cash and receivables, to assess liquidity improvement.
• Monitor current liabilities for signs of creditor pressure or overdue payables.
• Watch for capital injections or director loans that could shore up net assets.
• Review subsequent accounts and management commentary for evidence of profitability or business growth.
• Keep alert to any late filings or regulatory non-compliance as early risk indicators.