WEE SHEEP LIMITED

Executive Summary

WEE SHEEP LIMITED presents a moderate solvency risk primarily driven by a liquidity shortfall and a minimal operational footprint. While net assets have improved and regulatory compliance is maintained, the absence of employees and limited asset base raise sustainability concerns. Further due diligence is recommended to understand cash flow dynamics and the nature of liabilities to properly evaluate financial resilience.

WEE SHEEP LIMITED - Analysis Report

Company Number: 13146570

Analysis Date: 2025-07-29 20:42 UTC

1. Risk Rating: MEDIUM
   Justification: WEE SHEEP LIMITED is an active, micro-entity private limited company with limited financial disclosures due to its size. The company shows a positive net asset position which improved from £5,281 in 2023 to £10,874 in 2024. However, its current liabilities exceed current assets by a substantial margin in absolute terms (£18,205 liabilities to £944 assets in 2024), indicating liquidity pressure. The absence of employees and minimal fixed assets suggest a very lean operational structure, increasing dependency on cash flow management.

2. Key Concerns:

• Liquidity Mismatch: Current liabilities are significantly higher than current assets, posing a risk to short-term solvency and day-to-day operations.
• Lack of Operational Scale: Zero employees and modest fixed assets raise questions about the capacity to sustain or grow business activities, especially in freight transport by road.
• Limited Financial Transparency: As a micro-entity, the company files minimal financial data with no profit and loss account disclosed, restricting comprehensive financial analysis and risk assessment.

3. Positive Indicators:

• Improving Net Assets: The net asset base has roughly doubled in the latest year, suggesting some form of capital injection or retained earnings growth.
• No Overdue Filings: All accounts and confirmation statements are up to date, demonstrating regulatory compliance and good governance in filing obligations.
• Sole Director with Full Control: The director holds 75-100% ownership and voting rights, implying clear decision-making authority which can facilitate swift strategic responses.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess timing and certainty of repayment obligations.
• Clarify the business model and revenue generation mechanism given the lack of employees and low current assets.
• Request management accounts or cash flow statements to evaluate operational cash flows and working capital management.
• Confirm whether the director or related parties have provided financial support or guarantees to the company.
• Assess any contingent liabilities or off-balance sheet commitments not disclosed in micro-entity accounts.