Company Number: 13549082

Analysis Date: 2025-07-20 13:59 UTC

1. Risk Rating: LOW
   CWI Trading Limited demonstrates positive net assets and working capital, with no overdue filings or signs of distress. The company has steadily improved its financial position since incorporation, suggesting low solvency and liquidity risk at present.

2. Key Concerns:

• The company is relatively young (incorporated 2021) with limited financial history, which inherently increases risk due to lack of long-term operational track record.
• Initial financial year showed negative net assets and significant current liabilities, indicating early liquidity challenges that have since improved but warrant monitoring.
• The director is also company secretary and sole significant controller, which can raise governance concerns due to concentration of control and potential lack of independent oversight.

3. Positive Indicators:

• Net current assets increased from £1,176 (2023) to £2,242 (2024), reflecting improved liquidity.
• Shareholders’ funds rose from negative £7,230 at incorporation to positive £3,951 in 2024, indicating strengthening solvency.
• The company has filed all statutory accounts and confirmation statements on time with no overdue returns or penalties.
• Operating in retail and wholesale trade sectors with a diversified SIC code profile including wholesale of computers and retail via internet, potentially spreading operational risks.

4. Due Diligence Notes:

• Review detailed profit and loss figures (not filed publicly) to understand profitability trends and cash flow generation, as these are not disclosed in the accounts document.
• Investigate the early period of negative net assets and how the company managed liquidity and creditor relationships during that phase.
• Assess the director’s background and ability to manage both compliance and operational roles effectively, including any potential conflicts of interest due to dual roles.
• Confirm the nature and terms of any significant creditors or liabilities falling due within one year to assess ongoing liquidity risk.
• Understand stock valuation methods and turnover to verify the quality of current assets, as stock represents a significant portion of current assets.