Company Number: 14379625

Analysis Date: 2025-07-29 15:53 UTC

1. Credit Opinion: DECLINE
   Wafa Calls Ltd shows signs of financial weakness with net liabilities of £47 as at September 2024, despite being a very young company incorporated in 2022. The negative shareholders' funds and net liabilities indicate that the company’s liabilities exceed its assets, which raises concerns about its ability to meet obligations and service any credit facilities. Moreover, the company’s minimal current assets (£1,148 cash only) relative to total liabilities (£1,195 including both current and long-term creditors) suggests limited liquidity. Given the business is in wireless telecommunications—a capital intensive sector—this weak financial footing and lack of tangible assets imply high risk. Without stronger capitalisation or cash flow, the company is unlikely to sustain debt repayments.

2. Financial Strength:
   The balance sheet shows no fixed assets, only cash and minimal current assets. Current liabilities stand at £373 with creditors after one year at £822, indicating some longer-term obligations. Net current assets are positive (£775), but when factoring the long-term creditors, net assets turn negative (£-47). Shareholders’ funds are negative at £-49, evidencing an erosion of equity. There is no retained profit, and the small share capital (£2) reflects minimal initial investment. The company’s accounts are unaudited and prepared under the small companies regime, limiting assurance on accuracy. Overall, the company’s financial strength is very weak, with negative net worth and a balance sheet dominated by liabilities.

3. Cash Flow Assessment:
   Cash at hand is only £1,148, barely covering current liabilities of £373, which superficially suggests adequate short-term liquidity. However, the presence of £822 creditors due after one year indicates upcoming obligations that the company may struggle to meet without improved cash generation. The average number of employees is just one, hinting at a lean operation but also limited capacity to generate operational cash flow. No turnover or profit figures are disclosed, making it difficult to assess operational cash flows. Overall, cash flow appears constrained, and working capital is fragile, giving little buffer to absorb shocks or fund growth.

4. Monitoring Points:

• Monitor quarterly cash flow statements and turnover trends to assess operational viability and liquidity improvements.
• Track changes in creditors, especially long-term payables, to evaluate whether liabilities are increasing or being managed down.
• Watch for any capital injections or equity financing that improve net asset position and shareholder funds.
• Observe management actions on cost control and contract wins in the wireless telecommunications sector for revenue growth.
• Review subsequent filings for any audit opinions, director reports, or notes indicating financial distress or restructuring plans.