WEBSTAR NETWORK LTD

Executive Summary

Webstar Network Ltd is a recently incorporated small private company in the advertising and web portal sectors, showing modest positive net assets and full compliance with filing obligations. However, its limited operating history, minimal liquidity buffer, and sole director control present moderate risks to solvency and operational stability. Further due diligence on business viability and governance is recommended to fully assess investment suitability.

WEBSTAR NETWORK LTD - Analysis Report

Company Number: 15024644

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (July 2023) with a very limited operating history and modest net current assets of £3,568. While it shows positive shareholders' funds, the scale and duration of trading are minimal, and the balance sheet is thin, indicating moderate solvency risk. Liquidity appears sufficient for current obligations but limited operational cash reserves and no employees suggest early-stage status with inherent business sustainability challenges.

2. Key Concerns:

• Very limited financial history and scale: The company has been trading for just over one year with minimal assets and no employees, raising questions about operational viability and revenue generation capacity.
• Thin liquidity buffer: Cash of £15,828 against current liabilities of £12,529 leaves little margin for unexpected expenses or downturns.
• Concentrated control and governance risk: One director and sole shareholder controls 100% of voting rights, potentially limiting checks and balances in management and strategic decisions.

3. Positive Indicators:

• Compliance with filing requirements: Accounts and confirmation statement are up to date with no overdue filings, indicating good regulatory compliance and governance in reporting.
• Net current assets positive: The company maintains a positive working capital position, albeit modest, reducing immediate solvency concerns.
• Clear industry classification: Operating in advertising agencies and web portals (SIC 73110, 63120), sectors with growth potential if successfully exploited.

4. Due Diligence Notes:

• Investigate revenue streams and business model viability given no employees and small debtor balance. Assess contracts or pipeline to understand sustainability.
• Examine director background and experience, especially given sole control and potential governance risks. Verify no undisclosed related-party transactions.
• Review cash flow forecasts beyond the first year to check if liquidity will remain adequate as operations scale.
• Confirm absence of contingent liabilities or off-balance-sheet risks that could compromise financial stability.