CWMRATH LTD

Executive Summary

CWMRATH LTD, a newly incorporated micro-entity with no turnover and significant long-term liabilities, currently presents a high risk profile due to negative net assets and no liquid resources. While compliance with statutory filings is current and governance appears sound, the lack of operational income and asset base raises serious concerns about solvency and liquidity. Further due diligence is required to understand creditor terms and management’s plans for achieving financial sustainability.

CWMRATH LTD - Analysis Report

Company Number: 15166636

Analysis Date: 2025-07-20 12:12 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets (£-35,819) and no turnover or current assets, yet it has creditors due after more than one year (£35,821). This indicates significant liabilities without corresponding assets or income, posing a high solvency risk.

2. Key Concerns:

   • Negative Equity: Shareholders’ funds stand at -£35,819, indicating the company is technically insolvent on a balance sheet basis.
   • No Revenue or Current Assets: The company generated zero turnover and holds no current assets, raising liquidity and operational sustainability concerns.
   • Long-Term Creditors: Existence of creditors due after more than one year without any assets or income to cover these liabilities suggests potential financial distress.

3. Positive Indicators:

   • Compliance with Filings: The company is current with account and confirmation statement filings, with no overdue submissions as of the latest dates.
   • Clear Ownership and Governance: Control is clearly defined with two directors/shareholders, and no red flags related to director conduct or disqualifications are apparent.
   • Small Micro Entity Status: The company benefits from micro-entity accounting exemptions, reducing administrative burdens.

4. Due Diligence Notes:

   • Investigate the nature and terms of the long-term creditors amounting to £35,821 to understand the source and repayment conditions.
   • Review planned business activities or funding strategies to determine how the company intends to generate revenue and improve its asset base.
   • Confirm whether the negative equity reflects initial setup costs or related party loans, and assess management’s plan to address solvency.
   • Verify the lack of turnover is due to company’s infancy (incorporated late 2023) rather than operational failure.