WABTRADERS LTD

Executive Summary

WABTRADERS LTD demonstrates improving financial indicators with a positive working capital turnaround and compliance with filing obligations. However, the presence of significant long-term creditors and minimal operational scale introduce medium solvency and liquidity risks. Further investigation into the nature of liabilities and business operations is recommended to fully assess financial stability.

WABTRADERS LTD - Analysis Report

Company Number: 13889857

Analysis Date: 2025-07-20 18:45 UTC

1. Risk Rating: MEDIUM
   The company shows improvement in net current assets and net assets over a short period, indicating some financial recovery and asset growth. However, there remains a material level of creditors due after more than one year and relatively low net assets, which could pose solvency and liquidity challenges.

2. Key Concerns:

• Long-term Creditors: As of 31 March 2024, WABTRADERS LTD reports £10,852 of creditors due after one year, which is significant relative to net assets (£2,973). This suggests dependency on long-term liabilities that may strain solvency if cash flows are insufficient.
• Negative Net Current Assets in Prior Year: The prior financial year (to 28/02/2023) showed negative net current assets (-£975), indicating liquidity stress that was only recently reversed. This historical weakness warrants monitoring for ongoing liquidity management.
• No Employees and Limited Operational Scale: The company reports zero employees and minimal fixed assets (£1,277), raising questions about operational scale and sustainability. Without more information on business activities or contracts, operational stability is uncertain.

3. Positive Indicators:

• Improved Working Capital Position: The net current assets improved from a negative position in 2023 to £12,548 in 2024, indicating better short-term financial health and potential capacity to meet short-term liabilities.
• No Overdue Filings and Active Status: The company is active with up-to-date filings (accounts and confirmation statement), which signals compliance with regulatory requirements and governance discipline.
• Strong Shareholder Control: A single individual, Mr. Waqas Hanif, maintains full ownership and control, which can facilitate agile decision-making and accountability.

4. Due Diligence Notes:

• Examine Nature and Terms of Long-Term Creditors: Understanding the composition, interest rates, covenants, and repayment schedules of long-term liabilities is critical to assess solvency risk.
• Review Cash Flow Statements and Operational Contracts: As micro-entity accounts lack detailed cash flow data, further review of internal financials or management accounts is necessary to evaluate liquidity and revenue sustainability.
• Assess Business Model Viability: Clarify the operational activities supporting the SIC codes (security and commodity contracts dealing, retail sale of mobile phones) given the absence of employees and minimal fixed assets. Verify if third-party contractors or outsourcing arrangements are in place.
• Director Background and Related Party Transactions: Confirm no conflicts of interest or related-party transactions that might affect financial position given sole directorship and ownership.