WAF TECHNOLOGY LTD

Executive Summary

WAF Technology Ltd is a recently established small software development company with compliant statutory filings but modest financial resources. The company’s negative net current assets and reliance on director loans represent moderate liquidity and solvency risks. Further due diligence on cash flows, director financing, and operational performance is recommended to confirm financial stability and growth potential.

WAF TECHNOLOGY LTD - Analysis Report

Company Number: 13174366

Analysis Date: 2025-07-20 12:03 UTC

1. Risk Rating: MEDIUM
   WAF Technology Ltd is an active private limited company incorporated in 2021, operating in business and domestic software development. The company shows modest asset levels and has a small shareholder base controlled entirely by a single director. While it is current on statutory filings, its net current liabilities and reliance on director loans present moderate solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Current Assets: The company reported net current liabilities of £849 as of 28/02/2024, indicating potential short-term liquidity pressure.
• Director’s Current Account Liability: There is a significant creditor balance (£8,955) owed to the director, suggesting reliance on director financing rather than external debt or equity. This could indicate cash flow constraints or undercapitalization.
• Modest Shareholders’ Funds and Low Capitalisation: With equity of only £1,180 and share capital of £1, the company operates with minimal capital buffer, which limits its ability to absorb losses or invest in growth.

3. Positive Indicators:

• Filing Compliance: No overdue accounts or confirmation statements, reflecting good regulatory compliance and governance discipline.
• Consistent Debtor Position: Debtors have increased steadily from £2,552 in 2021 to £5,157 in 2024, indicating ongoing business activity and receivable generation.
• Stable Director Involvement: The sole director and 75-100% shareholder has maintained continuous control since incorporation, implying consistent management oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s current account balance to understand if it is repayable or convertible into equity, and its impact on liquidity.
• Review recent trading performance and cash flow statements not included here to assess operational sustainability and ability to meet short-term obligations.
• Confirm the company’s revenue trends and client base to evaluate growth prospects and the stability of its software development business.
• Assess any contingent liabilities or off-balance-sheet risks not disclosed in these accounts.
• Verify the basis for the company’s small company exemption and whether audit or more detailed financial review is warranted for risk assessment.