WAVEPUNK GLOBAL DISTRIBUTION LTD

Executive Summary

WAVEPUNK GLOBAL DISTRIBUTION LTD presents a low solvency and regulatory risk profile with improving net assets and compliance adherence. However, limited operational scale indicated by zero employees and concentration of control warrant further examination. Overall, the company appears financially stable but requires additional insight into business sustainability and liquidity trends.

WAVEPUNK GLOBAL DISTRIBUTION LTD - Analysis Report

Company Number: 12882104

Analysis Date: 2025-07-29 20:21 UTC

1. Risk Rating: LOW

Justification: WAVEPUNK GLOBAL DISTRIBUTION LTD demonstrates improving net assets and net current assets over the last fiscal year, indicating strengthening financial position. The company is compliant with filing deadlines and is not in liquidation or any insolvency proceedings. The micro-entity status and exemption from audit suggest a small scale operation with limited complexity.

2. Key Concerns:

• Reliance on a single director and a company secretary with significant control could present governance concentration risk.
• The company had zero employees on average in the latest year, potentially indicating limited operational capacity or reliance on external resources.
• Current assets have declined significantly from the prior year (£68k to £49k), which could signal reduced liquidity despite positive net current assets.

3. Positive Indicators:

• Net assets increased substantially from £1,869 in 2023 to £9,326 in 2024, reflecting improved solvency.
• Positive net current assets of £7,856 demonstrate short-term liquidity to cover current liabilities.
• The company is up-to-date with accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• No audit requirement reduces financial reporting burden and costs.

4. Due Diligence Notes:

• Investigate the nature and sustainability of revenue streams given the reduction in current assets and zero average employees.
• Review the relationship and influence of the PSC (Francisco Palacio Sanchez) on company decisions and potential conflicts of interest.
• Understand the company's working capital management and any seasonal or cyclical factors affecting liquidity.
• Confirm the absence of contingent liabilities or off-balance sheet risks not captured in the micro-entity accounts.
• Assess business model viability in the retail sale of textiles and telecommunications equipment sectors, including market position and competition.