WATT NORTH EAST LIMITED

Executive Summary

WATT NORTH EAST LIMITED shows acute solvency and liquidity weaknesses with negative net assets and current liabilities significantly exceeding current assets. While compliant with filings and under active director control, the company’s financial position and minimal scale raise high risk for investors. Detailed due diligence on liabilities and business viability is essential before considering exposure.

WATT NORTH EAST LIMITED - Analysis Report

Company Number: SC741270

Analysis Date: 2025-07-29 13:54 UTC

1. Risk Rating: HIGH
   WATT NORTH EAST LIMITED exhibits significant solvency and liquidity concerns, demonstrated by negative net assets and net current assets, which indicate inability to cover short-term and total liabilities.

2. Key Concerns:

• Negative net assets of £3,080 and worsening net current liabilities of £2,730 at the 2024 year end, showing deepening financial distress.
• Current liabilities (£2,963) far exceed current assets (£233), signaling immediate liquidity risk and potential cash flow problems.
• The company has minimal operational scale (one employee) and limited financial information, raising questions about sustainability and growth prospects.

3. Positive Indicators:

• Company is fully compliant with filing requirements; no overdue accounts or confirmation statements reported.
• Sole director and major shareholder, Ms. Summer Watt, appears actively involved and responsible for governance, potentially ensuring prompt management decisions.
• The micro-entity status reduces administrative burden and audit requirements, which could help manage costs.

4. Due Diligence Notes:

• Investigate nature of liabilities and creditor relationships to assess possibility of restructuring or debt relief.
• Clarify business model and revenue generation plans, given absence of trading profits and minimal assets.
• Review director’s plans for capital injection or operational turnaround to recover negative equity position.
• Confirm if there are any contingent liabilities or off-balance-sheet obligations not disclosed.
• Assess if related party transactions exist given controlling shareholders' concentration.