Company Number: 12431045

Analysis Date: 2025-07-29 19:48 UTC

1. Risk Rating: HIGH
   Justification: Westpoint Capital Limited shows persistent net current liabilities and negative net assets over multiple years, indicating ongoing financial distress and balance sheet insolvency. The company relies heavily on intercompany balances, with substantial amounts owed by and to group undertakings, which may not be readily recoverable or payable, raising liquidity concerns.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets deteriorated from -£1,076 in 2021 to -£3,560 in 2024, with shareholders’ funds similarly negative, indicating accumulated losses and potential insolvency risk.
• Working Capital Deficit: Current liabilities exceed current assets consistently, with net current liabilities increasing to -£3,560 in 2024, suggesting difficulties in meeting short-term obligations without external support.
• Dependence on Related Parties: The large debtor balance (£40,406) is entirely amounts owed by group undertakings, matched by similar creditor balances owed to the same, creating a circular dependency that may mask underlying cash flow problems.

3. Positive Indicators:

• Filing Compliance: The company is up to date with filing of accounts and confirmation statements, with no overdue filings or indications of regulatory non-compliance.
• Single Director and PSC Alignment: The sole director and person of significant control are the same individual, potentially enabling streamlined management and decision-making.
• Small Company Exemption: The company’s micro/small size limits complex reporting requirements, which the company complies with, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature and recoverability of intercompany balances to assess real liquidity and solvency.
• Review the company’s business model and cash flow forecasts to determine how operational sustainability is being addressed given ongoing losses.
• Verify whether external funding or director loans are expected to continue to support the business or if there is a plan to return to profitability.
• Confirm no director disqualifications or governance issues exist beyond the data provided.
• Consider requesting management accounts or cash flow statements for a more current financial position.