CWL BUSINESS SOLUTIONS LTD

Executive Summary

CWL Business Solutions Ltd operates with significant financial distress evidenced by large and growing net liabilities and poor liquidity ratios. While the company maintains compliance with statutory filings and clear ownership, its negative net assets and working capital shortfall pose a high risk of insolvency without corrective action. Further inquiry into liability structure and operational viability is recommended before considering investment.

CWL BUSINESS SOLUTIONS LTD - Analysis Report

Company Number: 13244959

Analysis Date: 2025-07-29 13:05 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, demonstrated by persistent and increasing net liabilities over the last three financial years. The negative net current assets and shareholders’ funds indicate an inability to meet short-term obligations without external support.

2. Key Concerns:

• Severe Negative Net Assets: Net liabilities worsened from approximately -£6,168 in 2023 to -£24,115 in 2024, signaling deteriorating financial health and potential insolvency.
• Liquidity Deficiency: Current liabilities vastly exceed current assets (£23,552 vs. £35 in 2024), implying the company cannot cover immediate debts from liquid resources.
• Small Scale & Single Director Control: Operating as a micro-entity with one director and one employee may limit operational resilience and governance oversight, increasing operational risk.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting compliance with statutory filing obligations.
• Ownership Transparency: The sole director and 75-100% owner is clearly identified, providing clarity on control and accountability.
• Exemption from Audit: As a micro-entity, the company benefits from simplified reporting, which can reduce administrative burdens.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to determine whether they are trade creditors, loans, or accruals, and whether repayment terms are manageable.
• Assess cash flow forecasts or management plans to address the significant working capital deficit and negative equity.
• Review any contingent liabilities, related party transactions, or director loans that may impact financial stability.
• Understand the business model and revenue generation capacity given the micro scale and management consultancy sector specifics.
• Confirm whether the director has made any personal guarantees or if there is external funding supporting the business.
• Verify whether there are any ongoing legal, regulatory, or tax issues given the financial distress indicators.