WELL WORDED LTD

Executive Summary

WELL WORDED LTD presents low solvency and liquidity risks with steadily increasing net assets and compliance with filing requirements. However, the reduction in fixed assets and limited operational scale warrant further investigation to confirm sustainable business operations. Overall, the company appears stable within its micro-entity classification but should be monitored for operational resilience.

WELL WORDED LTD - Analysis Report

Company Number: 12894952

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: LOW
   WELL WORDED LTD demonstrates a solid net asset position with consistent growth over the past four years, maintaining positive net current assets and shareholders’ funds. The absence of overdue filings and the small scale of operations reduce immediate regulatory and liquidity concerns.

2. Key Concerns:

• Asset Decline: Fixed assets have decreased notably from £2,854 in 2020 to £464 in 2024, which may indicate asset disposals or lack of reinvestment that could impact operational capacity.
• Limited Scale and Resources: As a micro-entity with only one employee, the company’s operational resilience and capacity to scale or absorb shocks may be limited.
• Industry Classification Ambiguity: The combination of SIC codes 84110 (General public administration activities) and 70210 (Public relations and communications) is somewhat unusual for a private limited company and may merit further clarity on business model stability.

3. Positive Indicators:

• Strong Liquidity Position: Net current assets increased from £11,747 in 2020 to £21,199 in 2024, showing ample short-term asset coverage over liabilities.
• Consistent Growth in Net Assets: Shareholders’ funds increased steadily each year, reflecting retained earnings or capital injections supporting solvency.
• Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue status, indicating good governance and regulatory compliance.

4. Due Diligence Notes:

• Investigate the reason for the decline in fixed assets and assess if this impacts operational capability or future earning potential.
• Clarify the primary business activities to confirm the legitimacy and sustainability of revenue streams given the SIC codes.
• Review cash flow statements or management accounts (if available) to confirm that liquidity strength is maintained within operational cash flow, not just balance sheet accruals.
• Confirm the identity and background of the sole director and any persons with significant control for governance and risk assessment.