NGWA LTD

Executive Summary

NGWA LTD exhibits a high risk profile primarily due to its negative net assets and current liabilities exceeding current assets as of the latest financial year end. While the company maintains compliance with filing obligations, its limited operating scale and deteriorated financial position raise concerns about solvency and liquidity. Further investigation into the causes of financial decline and assessment of operational viability is recommended prior to investment consideration.

NGWA LTD - Analysis Report

Company Number: 14151803

Analysis Date: 2025-07-29 14:54 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position over the past year, moving from positive net assets of £3,072 in 2023 to net liabilities of £117 in 2024. This indicates potential solvency issues.

2. Key Concerns:

• Negative net current assets and net liabilities as of 2024 year end suggest inability to meet short-term obligations on a going concern basis.
• Very low current assets (£387) compared to current liabilities (£504) raises liquidity concerns and potential cash flow stress.
• The company is very young (incorporated in 2022) with limited operating history and minimal employee base (1 employee), which may indicate operational fragility and limited business scale.

3. Positive Indicators:

• Company is current with all filings and accounts, demonstrating regulatory compliance and good governance in terms of statutory deadlines.
• The small size and micro-entity status reduce complexity and reporting burden, which may help management focus on operations.
• No indication of insolvency proceedings or director disqualifications at present.

4. Due Diligence Notes:

• Investigate reasons for sharp decline in net assets and current assets between 2023 and 2024—was this due to operating losses, write-downs, or asset disposals?
• Review cash flow statements and creditors aging to assess liquidity management and risk of overdue payables.
• Assess business model sustainability given minimal employee count and modest asset base, particularly in hospital activities sector which may require more substantial resources.
• Confirm no contingent liabilities or off-balance sheet obligations that could exacerbate solvency risk.
• Clarify future funding plans or capital injections to restore net asset position.