WEGO GROUP LTD

Executive Summary

Wego Group Ltd shows persistent negative equity and heavy reliance on director loans, posing a high solvency risk. While the company remains compliant with filing obligations and directors assert going concern, the absence of employees and operational revenue raises concerns about sustainability. Further investigation into director financing and operational viability is recommended before considering investment.

WEGO GROUP LTD - Analysis Report

Company Number: 13130726

Analysis Date: 2025-07-20 11:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with persistent negative net assets and shareholders' funds over multiple years. The large directors' loan account classified as long-term creditor and negative equity indicates reliance on insider funding rather than external capital or operational profitability.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company shows a worsening net liabilities position of £-13,828 as of January 2025, indicating insolvency on a balance sheet basis.
• Large Directors’ Loan Account: £19,492 classified as a creditor due after more than one year suggests the company depends heavily on director financing rather than operational cash flow or external funding.
• No Employees and Limited Operational Data: The accounts report nil employees and no turnover or profit and loss details, which may reflect minimal operational activity or a dormant-like status despite active registration.

3. Positive Indicators:

• Timely Filing and Compliance: The company is up to date with its accounts and confirmation statement filings, with no overdue returns or penalties noted.
• Going Concern Assertion: Directors confirm no material uncertainties about going concern and state shareholders' and directors' financial support, which may provide some liquidity assurance short term.
• Small Asset Base with Some Cash Reserves: Although limited, cash balances increased from £60 to £2,096 over the last year, showing some improvement in liquid assets.

4. Due Diligence Notes:

• Investigate the nature and terms of the directors' loan account, including repayment schedules and whether the directors can sustain ongoing funding.
• Clarify the company’s revenue generation and operational status given zero employees and lack of profit and loss information in the accounts.
• Confirm whether the company has any contingent liabilities or off-balance sheet commitments that could further impact solvency.
• Review related party transactions and potential conflicts of interest given the directors’ significant financial involvement.
• Assess future plans for capital injection, business development, or restructuring to return the company to a solvent position.