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.