WAW SOCIAL T/A WAGS AND WALKS COMMUNITY INTEREST COMPANY

Executive Summary

WAW SOCIAL T/A WAGS AND WALKS COMMUNITY INTEREST COMPANY, a recently incorporated CIC, currently operates with minimal financial resources and a negative net asset position. While regulatory compliance is up to date and the social enterprise model may attract community support, the company’s limited turnover, cash, and operational scale present significant solvency and liquidity risks. Further due diligence on funding sources and business sustainability is advised before considering investment.

WAW SOCIAL T/A WAGS AND WALKS COMMUNITY INTEREST COMPANY - Analysis Report

Company Number: 14287437

Analysis Date: 2025-07-20 12:22 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to very limited financial resources, negative net assets, and minimal operational scale as a community interest company (CIC) with no share capital.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The balance sheet shows net current liabilities of £4 and net assets of -£4, indicating the company’s liabilities slightly exceed its assets, which raises solvency concerns.
• Minimal Revenue and Cash Resources: Turnover is only £2,233 with cash at hand of £279, insufficient to absorb operating expenses or unexpected costs, indicating liquidity risk.
• No Employees and Limited Operational Scale: With zero employees and nominal financial activity, the business model’s sustainability and ability to scale or generate sufficient future cash flow are uncertain.

3. Positive Indicators:

• No Overdue Filings and Active Status: The company is up to date with accounts and confirmation statement filings, showing compliance with regulatory requirements.
• Community Interest Company Status: CIC designation suggests a social enterprise focus, potentially attracting grants, donations, and community support beyond commercial revenue.
• Board Stability: Directors have maintained governance with no reported resignations aside from one director early in the company’s life.

4. Due Diligence Notes:

• Verify sources and sustainability of funding, including grants or donations, to understand cash flow beyond reported turnover.
• Investigate any contingent liabilities or off-balance sheet commitments not reflected in the accounts.
• Review business plan or forecasts to assess operational viability and planned growth or fundraising activities.
• Confirm no director disqualifications or governance issues beyond those disclosed.
• Assess the impact of the company’s small size and limited assets on its ability to meet obligations and continue as a going concern.