WAVI TECH LTD

Executive Summary

WAVI TECH LTD demonstrates a solid capital foundation but lacks operational activity and assets, resulting in a stable but inactive financial state. To improve its financial health, the company must activate trading operations, invest in working capital and assets, and build a team to realize its business potential. Compliance is strong, yet transforming capital into operational vitality is essential for future growth.

WAVI TECH LTD - Analysis Report

Company Number: 13137508

Analysis Date: 2025-07-20 18:35 UTC

Financial Health Assessment Report for WAVI TECH LTD

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1. Financial Health Score: C

Explanation:
WAVI TECH LTD shows a stable but static financial position typical for a micro-entity in the early years of operation. The company’s balance sheet reflects substantial capital investment (£10 million share capital) but minimal operational activity or turnover, with zero reported assets, liabilities, or employees. While the company is solvent and free of debt, the absence of current assets and liabilities, alongside no trading activity, signals a dormant or non-operational state rather than a healthy growing business. This results in a middling score due to the lack of active financial vitality despite a strong equity base.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Share Capital	£10,000,000	Very strong equity base; significant shareholder investment.
Fixed Assets	£0	No long-term assets indicating no physical or intangible assets acquired.
Current Assets	£0	No cash, receivables, or stock; indicates no ongoing operations.
Current Liabilities	£0	No short-term debts; no working capital concerns.
Net Current Assets	£0	Neutral working capital; no liquidity to support operations.
Net Assets / Shareholders’ Funds	£10,000,000	Entirely equity funded, no liabilities—financially solvent.
Employees	0	No staff employed; reflects no active operational activity.
Filing Status	Up to date	No overdue filings; good compliance health.

Interpretation:
The company’s balance sheet resembles a ‘healthy heart with no pulse’ — large capital but no operational activity. The absence of current assets and liabilities suggests business is either dormant or in a preparatory phase without trading or investment in operational resources.

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3. Diagnosis

Underlying Business Health:
WAVI TECH LTD is a micro-entity with substantial injected capital but no recorded operational activity or trading results. The zero figures in current assets and liabilities, combined with no employees, indicate the company has not yet commenced or sustained commercial activity. This suggests the company is in a pre-operational state or has paused trading, which is a symptom of financial inactivity rather than distress.

Strengths:

• Strong equity base providing financial stability and no risk of insolvency.
• Compliance with filing deadlines, indicating good governance and legal standing.
• Clear control structure with directors and significant shareholders identified.

Symptoms of Concern:

• Lack of current assets and liabilities indicates no cash flow or working capital.
• No employees or operational activity can hinder business growth and market presence.
• Absence of fixed or intangible assets may imply no investment in technology, intellectual property, or equipment necessary for software development business.

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4. Recommendations

To improve financial wellness and transition from a dormant-like state to active, healthy business operations, WAVI TECH LTD should consider:

1. Activate Trading Operations:
   Begin or increase trading activity to generate revenue and cash flow, which is critical for business sustainability and growth.

2. Invest in Working Capital:
   Acquire current assets such as cash reserves, receivables, or inventory to support daily operations and meet short-term obligations.

3. Asset Acquisition:
   Consider purchasing or developing fixed assets (software, equipment) or intangible assets (IP rights) to build business value and operational capacity.

4. Human Resource Planning:
   Employ staff aligned with the company’s core activities in software development to advance project execution and innovation.

5. Financial Reporting Enhancement:
   Move beyond micro-entity accounts as operations scale, adopting more comprehensive financial reporting to attract investment and provide transparency.

6. Strategic Business Development:
   Develop a clear business plan and market strategy to leverage the strong equity foundation and enter or expand in the software development market.

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