WEB3CONNECTOR LTD

Executive Summary

Web3connector Ltd is a micro-entity with limited financial resources and a very small equity base, indicating moderate solvency and liquidity risks. The company maintains timely compliance and shows modest increases in current assets, but operational and governance risks remain due to its sole ownership and minimal capital. Further investigation into cash flow and business sustainability is recommended before investment consideration.

WEB3CONNECTOR LTD - Analysis Report

Company Number: 14302987

Analysis Date: 2025-07-29 20:03 UTC

1. Risk Rating: MEDIUM
   The company’s financial position shows very limited net assets (£23) and minimal working capital, which indicates constrained financial resources. However, there are no overdue filings or insolvency indicators, and the company remains active with compliance up to date.

2. Key Concerns:

• Low Net Assets and Equity: Shareholders’ funds have decreased from £47 to £23, signaling fragile capitalization and potential solvency risks if losses continue.
• Minimal Working Capital: Although positive (£1,438), net current assets are very small, limiting operational liquidity to meet short-term obligations comfortably.
• Single Director and Owner: With 100% ownership and control held by one individual, there is increased governance risk and dependence on one person for business continuity and decision-making.

3. Positive Indicators:

• Timely Compliance: All accounts and confirmation statements are filed on time, reflecting good regulatory compliance.
• Increasing Current Assets: Current assets increased from £2,101 to £5,339, suggesting some improvement in liquidity resources.
• Small Operating Scale: As a micro-entity with only one employee/director, the company likely has low overheads, potentially reducing operational risk.

4. Due Diligence Notes:

• Verify the nature and timing of accruals and deferred income (£1,415) as this materially affects net asset reporting.
• Assess cash flow statements and profit and loss performance for sustainability, as the accounts do not include profitability or cash flow data.
• Investigate business model viability and client base given the micro scale and limited financial buffer.
• Review director’s track record and commitment, given sole control and operational responsibility.
• Confirm absence of any contingent liabilities or off-balance sheet risks not reflected in current filings.