WAYWITH LIMITED

Executive Summary

Waywith Limited exhibits low financial risk with strong liquidity and solvency metrics as of the latest accounts. The company is compliant with filing requirements and has a solid cash position, supporting operational continuity. Attention should be given to understanding the causes of declining net assets and intangible asset amortisation to ensure ongoing financial stability.

WAYWITH LIMITED - Analysis Report

Company Number: 13104842

Analysis Date: 2025-07-29 20:54 UTC

1. Risk Rating: LOW
   The company demonstrates strong liquidity and solvency based on the latest financial data, with substantial cash reserves relative to liabilities and positive net assets. There are no overdue filings or regulatory compliance issues noted.

2. Key Concerns:

• Declining net assets and shareholders’ funds from 2020 to 2023, indicating erosion of retained earnings and some reduction in overall equity.
• Significant reduction in intangible fixed assets (website costs amortised heavily), which might suggest investment in core IT assets is decreasing.
• Reduction in current assets, particularly debtors and cash, in 2023 compared to previous years, though still healthy, warrants monitoring for future liquidity trends.

3. Positive Indicators:

• Very strong cash position (£1.19 million) and net current assets (£1.18 million) as of the latest year-end, providing solid short-term liquidity.
• Low current liabilities (£15,195) relative to current assets, indicating excellent working capital management.
• No overdue accounts or confirmation statement filings, indicating good regulatory compliance and governance.
• Directors appear stable with no disqualifications or compliance issues noted.
• Going concern affirmed by directors supported by strong cash reserves.
• Small company exemption used appropriately; no audit requirement reducing administrative burden.

4. Due Diligence Notes:

• Investigate reasons behind the decline in net assets and retained earnings over the last four years to understand profitability and capital management trends.
• Review details of amortisation and impairment of intangible assets to assess sustainability of intangible asset base and potential impact on future earnings.
• Assess debtor quality and collectability given sharp reduction in debtor balances in 2023.
• Confirm no contingent liabilities or off-balance sheet risks exist that might impact solvency.
• Review operating results (not filed) for insights into revenue and cost trends to complement balance sheet analysis.
• Validate directors’ assessment of going concern with cash flow forecasts and business plan.