WELLPOINT GROUP LIMITED

Risk Rating: HIGH Justification: The company is currently in Liquidation and is deeply insolvent on a balance sheet basis, with shareholders' funds showing a deficit of nearly £4 million. The registered office has been transferred to an insolvency practitioner (Opus Restructuring LLP), confirming that the company is under formal closure proceedings and is no longer a going concern.

Key Concerns: * Formal Insolvency: The company status is explicitly listed as "Liquidation." This supersedes all other financial metrics; the business has failed, and control of asset realization has shifted to a liquidator. * Severe Balance Sheet Insolvency: As of the latest filed accounts (March 2023), the company reported net liabilities of £61,158 and an accumulated profit and loss deficit of £3,961,158. This deficit entirely wipes out the £3.9 million in share capital and share premium, indicating a massive destruction of shareholder value over time. * Stark Going Concern Contradiction: The directors signed off the March 2023 accounts on 19 December 2023, stating they had prepared a cash flow forecast to December 2024 and believed the company was a going concern. Given the company is now in liquidation, this projection was critically flawed, raising serious concerns about the reliability of management forecasting and governance at the time of signing.

Positive Indicators: * Historical Cash Reserves: Despite the severe losses, the company did hold £149,237 in cash as of March 2023, which may provide a marginal, though likely insufficient, pool for the liquidator to administer the winding-up process. * Unsecured Debtors: There are £131,092 in trade debtors on the books, which the liquidator may be able to realize to fund a partial distribution to creditors, depending on their age and recoverability. * Long Operational History: The company was incorporated in 2001 and successfully operated for approximately two decades before encountering its current terminal difficulties, suggesting a previously viable business model.

Due Diligence Notes: * Liquidation Details: It is imperative to establish whether this is a Creditors' Voluntary Liquidation (initiated by shareholders/directors) or a Compulsory Liquidation (court-ordered by a creditor), as this dictates the legal framework and potential director conduct scrutiny. * Asset Disposals: The FY2023 accounts show a massive disposal of plant and machinery (£494,109 in cost disposed of in a single year). Investigate the terms of this disposal, to whom the assets were sold, and whether this was conducted at arm's length or represented a potential transaction at undervalue, which a liquidator could seek to reverse. * Creditor Hierarchy: The accounts list £197,436 in "Other loans" falling due after more than one year. Investigation is required to determine if these are related-party loans (from the directors or PSCs) or arms-length debt, as this dictates their priority in the liquidation waterfall. * Accounts Overdue: The annual accounts are currently marked as overdue. While common in liquidation, the liquidator must ensure all outstanding regulatory filings are completed to avoid personal penalties and to finalize the company's tax affairs.