Company Number: 13709287

Analysis Date: 2025-07-20 17:56 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with negative net current assets and shareholders’ funds, indicating financial distress.

2. Key Concerns:

• Negative Net Current Assets: The company’s net current assets were (£82,673) in 2023, worsening from (£78,995) in prior years, signaling inability to cover short-term liabilities with current assets.
• Negative Shareholders’ Funds: Equity declined from a positive £100 in 2022 to (£3,578) in 2023, reflecting accumulated losses and erosion of capital.
• High Current Liabilities vs Minimal Current Assets: Current liabilities stood at £82,773 against negligible current assets (£100 debtors, no cash reported), creating liquidity risk and potential cash flow problems.

3. Positive Indicators:

• Compliance: The company is active, not in liquidation or administration, and filings (accounts and confirmation statement) are up to date with no overdue reports noted.
• Ownership and Control: Directors and PSCs are stable, with no adverse records such as disqualifications or changes noted.
• Tangible Fixed Assets: The company holds tangible fixed assets valued at £79,095, stable over the last two years, which may provide some asset backing.

4. Due Diligence Notes:

• Investigate the nature and terms of the £82,773 current liabilities to understand repayment obligations and any potential restructuring plans.
• Confirm if the company has access to any undrawn credit facilities or external funding sources to support liquidity.
• Examine cash flow statements and profit & loss details beyond what is filed to assess operational cash flows and sustainability.
• Clarify the cause of the £76,000 dividends paid in 2023 despite negative equity to understand governance and financial prudence.
• Assess the recoverability and usability of the fixed assets (£79,095) and whether they can be leveraged or sold to improve solvency.

Summary: PENWEND LTD demonstrates significant financial distress with negative working capital and shareholders’ funds, raising solvency and liquidity risks. While filings are current and governance appears stable, the company’s ability to meet obligations is questionable without further insight into liabilities and cash flows. Detailed due diligence on liabilities, cash position, and operational performance is essential to evaluate investment risk accurately.