Company Number: 13441498

Analysis Date: 2025-07-29 13:44 UTC

1. Risk Rating: HIGH
   Wagtails Group Ltd exhibits significant solvency and liquidity risks as evidenced by its substantial net current liabilities and negative shareholders’ funds. The company has persistently reported net liabilities over the last two years with no improvement, indicating ongoing financial distress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities increased from £57,043 in 2022 to £109,759 in 2023, signaling deteriorating financial health and potential insolvency risk.
• Severe Working Capital Deficit: Current liabilities (£184,866) far exceed current assets (£2,467) as of the latest accounts, resulting in a net current asset deficit of £182,399, which raises concerns about the company’s ability to meet short-term obligations.
• Director Loans and Support Reliance: The director, Mr. Luke Hurley, has significant outstanding advances to the company (£117,885), and going concern is justified only on the basis of director support, implying operational cash flow issues and dependence on related party funding.

3. Positive Indicators:

• No Overdue Filings: The company’s latest annual accounts and confirmation statement are timely and up to date, indicating regulatory compliance and governance discipline.
• Active Status with Stable Management: The same director has been in place since incorporation, and the company remains active without liquidation or administration proceedings.
• Tangible Assets Base: The company holds tangible fixed assets valued at approximately £72,640, which may provide some collateral value.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and whether additional financial support is expected or secured.
• Review detailed cash flow statements and management forecasts to assess the company’s ability to generate positive cash flows or secure further funding.
• Understand the underlying business model and trading performance, especially since turnover and profit/loss data were not disclosed, to gauge operational sustainability.
• Confirm if any contingent liabilities or overdue tax or creditors’ payments exist beyond those disclosed.
• Assess the risks associated with the company’s primary SIC code (96090 - other service activities not elsewhere classified), as it may indicate a niche or less transparent business sector.