Company Number: 14615726

Analysis Date: 2025-07-29 18:57 UTC

1. Credit Opinion: DECLINE
   WE PROTOTYP3 LTD currently exhibits significant financial distress as reflected by persistent negative net current assets and shareholders’ funds since incorporation. The company is a micro-entity with limited operating history, showing worsening balance sheet deficits (£-14,110 in 2024 to £-9,788 in 2025) and insufficient liquidity to cover short-term liabilities (£5,889 current assets vs £17,112 current liabilities in 2025). Given the ongoing negative working capital and absence of profitability or cash flow generation, the company has a high risk of defaulting on credit obligations. No mitigating factors such as external funding or strong asset base are evident, and the sole director also holds full control, limiting governance oversight.

2. Financial Strength:
   The balance sheet is weak with total liabilities exceeding total assets by nearly £10k as of January 2025. Fixed assets are negligible (£1,435), indicating limited tangible collateral. The company’s equity remains deeply negative, reflecting accumulated losses or undercapitalization. The micro size and no employees suggest minimal operational scale and revenue generation capability. Despite a slight improvement in net current liabilities from 2024, the overall financial position is fragile and highly leveraged.

3. Cash Flow Assessment:
   Current assets are substantially lower than current liabilities, resulting in negative net current assets of £-11,223 at the latest year-end. This signals liquidity stress and potential difficulty in meeting short-term commitments. The absence of employees and limited asset base further restricts operational cash inflows. No cash flow statements are provided, but the balance sheet position implies reliance on external funding or shareholder support to sustain operations.

4. Monitoring Points:

• Quarterly review of liquidity ratios (current ratio, quick ratio) to detect worsening working capital.
• Monitoring for any capital injections or shareholder loans that may improve solvency.
• Watch for timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Track any changes in director appointments or company status that may signal distress or restructuring.
• Review any operational progress or contract wins that could improve revenue and cash flow.