Company Number: 13279108

Analysis Date: 2025-07-20 17:28 UTC

1. Risk Rating: MEDIUM
   Wake The Tiger Ltd shows strong net asset value and significant fixed assets investment, but persistent net current liabilities and negative working capital indicate potential liquidity pressures that could affect short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company has a consistent net current liability position (£-1,046,935 as of 31/12/2024), indicating insufficient short-term assets to cover current liabilities, which may impair operational liquidity.
• High Current Liabilities: Over £1.49 million in current liabilities relative to cash of £380,958 suggests a potential cash flow mismatch risk.
• Dependence on Shareholder Funds: The company’s equity is heavily comprised of share premium (£3,142,141), with retained earnings showing a negative balance (£-813,544), implying accumulated operational losses or investment write-offs.

3. Positive Indicators:

• Strong Net Asset Position: Net assets increased to £2,666,661 in 2024 from £2,472,208 in 2023, supported by substantial fixed assets (£4.2 million), indicating investment in tangible and intangible assets.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating good regulatory compliance and governance discipline.
• Stable Ownership and Governance: Multiple directors with significant shareholdings (25-50% each) suggest aligned management interests and potentially stable control.

4. Due Diligence Notes:

• Investigate the nature and maturity profile of the current liabilities and creditor categories, especially the large ‘other creditors’ balances, to assess payment terms and potential refinancing risk.
• Review cash flow statements and management accounts to understand operational cash generation and timing of cash inflows/outflows given the negative working capital.
• Understand the drivers behind negative retained earnings and whether these reflect ongoing losses or accounting treatments such as asset impairments or development cost capitalization.
• Examine any contingent liabilities or off-balance sheet commitments not reflected in the accounts.
• Confirm the status and impact of the share option scheme under EMI, especially any potential dilution or financial obligations.