Company Number: 15046805

Analysis Date: 2025-07-29 14:33 UTC

Credit Opinion: DECLINE

Wake Holdings Limited is a newly incorporated private limited company (established August 2023) mainly classified under activities of production holding companies (SIC 64202). The financial statements for the first period ending September 2024 reveal significant liquidity and working capital concerns. The company holds fixed asset investments valued at £540,000 but only £5,080 in cash against current liabilities of £544,900, resulting in a net current liabilities (working capital deficit) of £539,820. This imbalance indicates an inability to meet short-term obligations as they fall due, raising substantial credit risk.

Financial Strength:

• The company’s balance sheet is heavily skewed towards long-term investments (£540k) with almost no liquid assets to cover short-term debts.
• Shareholders’ funds are minimal (£180), reflecting negligible retained earnings and equity base.
• The large current liability figure relative to current assets signals poor short-term solvency.
• The absence of any employees and lack of an income statement (not filed as per small company regime) limit visibility into operational performance and profitability.
• The company is essentially an investment vehicle with a single controlling director who owns 75-100% of shares and voting rights, indicating tight ownership but limited operational history.

Cash Flow Assessment:

• Cash at bank is very low (£5,080) compared to current liabilities (£544,900), highlighting a severe liquidity crunch.
• Negative net current assets imply the company relies on external financing or shareholder support to meet its immediate liabilities.
• No evidence of operating cash flows or earnings to support debt servicing or working capital replenishment.
• The company’s ability to generate cash internally is unproven given it has no employees and has only just commenced trading.

Monitoring Points:

• Monitor future filings for accounts showing operational revenue, profit, and improved liquidity.
• Watch for reductions in current liabilities or increases in cash and current assets.
• Track any new capital injections or shareholder loans that may support liquidity.
• Confirm if the company’s investment holdings generate income or if there are plans to monetize assets to cover liabilities.
• Monitor director conduct and any changes in ownership or governance that may affect credit risk.