WEB UNIVERSE LTD

Executive Summary

WEB UNIVERSE LTD currently demonstrates a weak financial position with negative net assets and poor liquidity, reflecting high credit risk. As a new micro-entity with minimal assets and significant liabilities, it lacks the financial strength to service debt reliably. Credit approval is not advised at this stage without substantial financial improvement or guarantees.

WEB UNIVERSE LTD - Analysis Report

Company Number: 15303689

Analysis Date: 2025-07-29 12:11 UTC

1. Credit Opinion: DECLINE

WEB UNIVERSE LTD shows a very weak financial position with significant net liabilities as of the last financial year ended 30 November 2024. The company’s net assets are negative at £13,672, primarily due to long-term creditors of £11,344 exceeding total assets. The negative net current assets of £3,628 indicate liquidity stress, making it unlikely the company can meet short-term obligations comfortably. As a micro-entity incorporated recently in November 2023, it has limited operating history and very minimal fixed and current assets (£1,300 and £447 respectively) against creditors due within one year and beyond. This suggests poor working capital management and insufficient cash buffer to service debt. The sole director and 100% owner is a web designer, indicating a likely founder-operated small business with limited financial reserves. Given these factors, the credit risk is high and approval for lending or credit facilities is not recommended without substantial improvement or external guarantees.

2. Financial Strength:

• Fixed assets are minimal (£1,300), indicating limited capital investment.
• Current assets (£447) are far outweighed by current liabilities (£4,075), resulting in negative net current assets of -£3,628.
• The company carries long-term liabilities of £11,344, which exceed total assets (£2,328), pushing net assets to a negative £13,672.
• Shareholders’ funds are negative, reflecting accumulated losses or initial capital shortfall.
• Overall, the balance sheet reflects an insolvent position on a net asset basis, indicating weak financial strength and poor capital structure.

3. Cash Flow Assessment:

• Negative net current assets highlight working capital deficiency and potential cash flow constraints.
• Current liabilities more than 9 times current assets suggest inability to cover immediate debts.
• The company’s micro size and one employee suggest limited operating cash inflows at present.
• No evidence of positive cash reserves or liquid assets to buffer short-term obligations.
• Without improvements in receivables collection, cost control, or capital injection, liquidity risk is elevated.

4. Monitoring Points:

• Monitor cash flow closely for any signs of improved liquidity or capital injections.
• Track creditor payment behavior—any missed or delayed payments would indicate worsening credit risk.
• Review future filings for profit generation or reduction in liabilities.
• Observe director actions regarding financial restructuring or business growth plans.
• Watch for any changes in ownership or additional funding to strengthen the balance sheet.