WEGENET INTERNATIONAL LIMITED

Executive Summary

WEGENET INTERNATIONAL LIMITED maintains strong liquidity and a positive net asset position, reflecting solid financial health for a micro-entity. However, a small operational loss and a notable reduction in current assets signal early symptoms of financial strain that warrant careful management. With prudent cost control and strategic focus, the company is well-positioned to regain profitability and sustain its financial vitality.

WEGENET INTERNATIONAL LIMITED - Analysis Report

Company Number: 13500766

Analysis Date: 2025-07-29 14:45 UTC

Financial Health Assessment for WEGENET INTERNATIONAL LIMITED

---

1. Financial Health Score: B

Explanation:
WEGENET INTERNATIONAL LIMITED demonstrates solid liquidity and a stable balance sheet with a strong net asset position for a micro-entity. However, the company has recorded a net loss in the most recent financial year, which indicates initial symptoms of operational strain. The overall financial health is good but cautious monitoring and some corrective action are advisable to maintain vitality.

---

2. Key Vital Signs

Metric	Latest Value (2024)	Interpretation
Current Assets	£165,930	Adequate short-term resources available to cover liabilities.
Current Liabilities	£1	Extremely low short-term obligations, almost negligible.
Net Current Assets (Working Capital)	£165,929	Very healthy liquidity; company can comfortably meet short-term debts.
Net Assets (Equity)	£165,929	Positive net worth; company has more assets than liabilities.
Share Capital	£325	Small capital base typical for a micro-entity.
Net Profit/Loss	-£2,476 (Loss)	Small operational loss indicating a symptom of cost or revenue imbalance.
Average Number of Employees	1	Very lean operation, with minimal personnel overhead.

Additional observations:

• The company’s working capital is very healthy, reflecting a "healthy cash flow" environment in terms of liquidity.
• The net loss is relatively small, which suggests early-stage operational challenges rather than severe distress.
• The drastic reduction in current assets from £632k in 2023 to £166k in 2024 may suggest cash outflows or asset sales, warranting further investigation.

---

3. Diagnosis

Underlying Business Health:
WEGENET INTERNATIONAL LIMITED shows signs of a stable financial "heartbeat" with strong liquidity and net asset position, indicating that the company is solvent and has a robust buffer to meet its short-term obligations. There are no signs of financial distress such as excessive debt or negative equity, which is reassuring and akin to a patient with normal vital signs.

However, the recorded net loss, although modest, is a "symptom of distress" that suggests the company’s operations are currently not generating profit. The significant drop in current assets year-on-year may indicate operational cash burn or investment in non-liquid assets, which could potentially impact liquidity if the trend continues.

Given the company is a micro-entity and very young (incorporated 2021), some initial losses can be expected as it establishes its business model, but sustained losses could become problematic.

---

4. Recommendations

1. Cost Control and Revenue Enhancement:

   • Perform a detailed review of expenses to identify and reduce unnecessary costs.
   • Explore opportunities to improve revenue streams, especially given the software development and financial intermediation activities indicated by SIC codes.

2. Cash Flow Management:

   • Monitor cash flow closely to ensure the company maintains its strong liquidity position. Avoid large one-off cash outflows without corresponding inflows.

3. Strategic Planning:

   • Develop a clear business plan aimed at sustainable profitability to address the net loss symptom. Consider market positioning and competitive analysis.

4. Financial Reporting and Oversight:

   • Maintain timely and accurate filings to uphold regulatory compliance and transparency.
   • Although exempt from audit, consider periodic internal reviews or external advisory to ensure financial controls are effective.

5. Capital Structure Review:

   • Given the small share capital, consider whether additional capital injections or equity restructuring might support growth or operational stability.

---

Summary Using Medical Analogy

WEGENET INTERNATIONAL LIMITED’s financial "vital signs" indicate a company with a strong liquidity "pulse" and positive "net asset health," akin to a patient with robust blood pressure and heart rate. However, the small operational loss is a "mild symptom" that requires proactive management to prevent progression to more serious "financial illness." Early intervention through cost control, revenue improvement, and strategic planning will help restore full "financial wellness."

---